COTTON
General Comments: Cotton was lower yesterday and the trends are sideways. Selling came from news that Trump will impose some big tariffs on China, but the tariffs posted were not as high as he had threatened before during the campaign. Support came from a very strong weekly export sales report as some buyers look to cover positions before the tariffs that President Trump is expected to impose. China has big problems with its domestic economy with consumer buying interest not strong and many people not working. There are still reports of weaker demand potential against an outlook for improved but still rather low US production in the coming year.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 69.70, 69.40, and 68.40 March, with resistance of 72.70, 73.50 and 74.70 March.DepositPhotos
FCOJ
General Comments: FCOJ closed higher yesterday. The short term supply scenario remains very tight. 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 and some extreme weather seen in the last couple of years. There are no weather concerns to speak of for Brazil right now.
Overnight News:
Chart Trends: Trends in FCOJ are mixed to up. Support is at 500.00, 494.00, and 484.00 January, with resistance at 536.00, 542.00, and 5248.00 January.
COFFEE
General Comments: New York and London closed sharply lower yesterday on what appeared to be producer and speculative selling. Reports of reduced offers from Brazil and Vietnam on weather induced short crops continue and there are also reports of too much rain in parts of Central America damaging crops there. There are reports from Brazil that producers have already sold a lot of Coffee and are holding back on selling more even with good demand. The chart trends are still up in both markets. The harvest in Vietnam is active, but selling has been slow. Rain remains in the forecast for Brazil crop areas. There are now reports for good rains in Brazil as the rainy season is now under way after very dry conditions.
Overnight News: The ICO average price is 285.22 ct/lb.
Chart Trends: Trends in New York are down. Support is at 291.00, 284.00, and 279.00 March, and resistance is at 316.00, 317.00 and 335.00 March. Trends in London are down. Support is at 4730, 4630, and 4470 January, with resistance at 5170, 5350, and 5400 January.
SUGAR
General Comments: New York closed a little lower and London closed unchanged to a little higher yesterday with the US Dollar trading much higher. The current Brazil rains have kept the harvest and crushing pace down but could provide a boost to production for next year. Trends are mixed to down in both markets on the daily charts but mixed on the weekly charts. 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 to down. Support is at 2020, 1980, and 1940 March and resistance is at 2220, 2260, and 2300 March. Trends in London are mixed to down. Support is at 540.00, 536.00, and 529.00 March, with resistance at 581.00, 592.00, and 596.00 March.
COCOA
General Comments: New York closed a little lower and London closed a little higher with the US Dollar very strong. Chart trends are up in both markets on the daily and weekly charts. Producers in Ghana and in Ivory Coast have been fighting against too 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. The Ivory Coast government has now reduced contract offers by about 40% on worries about less production due to too much rain. Ivory Coast port arrivals now total 643,000 tons, from 481,000 tons last year.
Overnight News:
Chart Trends: Trends in New York are up. Support is at 8784, 8750, and 8550 March, with resistance at 9570, 9600, and 9660 March. Trends in London are up. Support is at 7320, 7100, and 6920 March, with resistance at 7860, 7920, and 7980 March.More By This Author:Grains Report – Monday, Dec. 2
Softs Report – Wednesday, Nov. 27
Softs Report – Tuesday, Nov. 26