COTTON
General Comments: Cotton was lower yesterday on a stronger US Dollar and as export demand remains weak. Trends are mixed in this market. China moved to lower interest rates again and there are hopes this move will help restart the economic engine there. Real estate has been the big problem there. There are still reports of weaker demand potential against an outlook for improved US production in the coming year.
Overnight News:
Chart Trends: Trends in Cotton are mixed to up. Support is at 69.00, 68.30, and 67.50 December, with resistance of 70.10, 71.40 and 72.70 December.
FCOJ
General Comments: FCOJ closed slightly higher in consolidation trading. The market remains well supported in the longer term based on forecasts for tight supplies in Florida. The reduced production appears to be mostly at the expense of the greening disease. There are no weather concerns to speak of for Brazil right now. Rain is expected this week.
Overnight News:
Chart Trends: Trends in FCOJ are mixed. Support is at 510.00, 400.00, and 480.00 January, with resistance at a 529.00, 544.00, and 556.00 January.
COFFEE
General Comments: New York and London were lower yesterday as the US Dollar moved sharply higher. Reports of reduced offers from Brazil and Vietnam on weather induced short crops continue. The chart trends are mixed in both markets as the harvest in Vietnam is more active. Strong harvest activity is expected to start in Vietnam this month. The demand for Vietnamese Coffee is reported to be less right now. Rain remains in the forecast for Brazil crop areas but as crop losses are still a good possibility in Brazil and Vietnam. There are now reports for good rains in Brazil as the rainy season is now under way after very dry conditions. Brazil yields have been a little less so far.
Overnight News: The ICO average price is 243.88 ct/lb.
Chart Trends: Trends in New York are mixed. Support is at 242.00, 236.00, and 228.00 December, and resistance is at 256.00, 265.00 and 2w68.00 December. Trends in London are mixed. Support is at 4000, 3910, and 3800 January, with resistance at 4470, 4560, and 4670 January.
SUGAR
General Comments: New York and London closed lower yesterday. The rains have kept the harvest and crushing pace down but could provide a boost to production for next year. Trends are still sideways in both markets. Harvest progress is active in Brazil and growing conditions are much improved in India and Thailand. Indian and Thai mills are expecting strong crops of cane. It is also wet in Brazil, and this has affected harvest progress. Supplies available to the market could be less in the next six months. Total Brazil production has been affected by drought seen earlier in the year and the fires that destroyed crops in some areas.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 2160, 2100, and 2020 March and resistance is at 2260, 2300, and 2340 March. Trends in London are mixed. Support is at 555.00, 552.00, and 541.00 December, with resistance at 584.00, 590.00, and 593.00 December.
COCOA
General Comments: Both markets closed lower yesterday with New York sharply lower as the US Dollar moved sharply higher. Reports of better harvest conditions in West Africa have helped push differentials lower. Producers in Ghana and in Ivory Coast have been fighting to much rain that has made it hard to harvest and deliver crops. It has been very wet in West Africa lately and this is bringing concerns that pod disease could develop. Production in West Africa could be stronger this year on the overall improved weather in Ivory Coast and Ghana.
Overnight News:
Chart Trends: Trends in New York are down. Support is at 6820, 6430, and 6350 December, with resistance at 7260, 7520, and 7650 December. Trends in London are down. Support is at 5480, 5380, and 5200 December, with resistance at 5830, 5940, and 5980 December.More By This Author:Grains Report – Tuesday, Nov. 5Softs Report – Monday, Nov. 4Grains Report – Friday, Nov. 1
