General Comments: Futures were lower as traders got ready for the weekly export sales report. Rains are moving through the Delta and Southeast this week to slow planting progress, and it is still cold and dry in the north Texas region. The showers should move out of the Southeast today. The weather after this week is expected to turn somewhat warmer and drier. Some traders think that U.S. planted area will increase from the estimates released at the end of March due to more favorable cotton futures prices and sinking corn and soybean futures prices. Weather will be watched as more wet weather in the Delta and Southeast could create less interest in corn and more in cotton to avoid having corn pollinate in the hottest time of the year. Producers have been active planting depending on the región involved.
Overnight News: The Delta and Southeast will see rains over the weekend. Temperatures will average below normal this week and near to above normal this weekend. Texas will get mostly dry weather, but a few showers are possible on Friday. Temperatures will trend to near normal by Friday and above normal over the weekend. The USDA spot price is now 78.00 ct/lb. ICE said that certified cotton stocks are now 0.498 million bales, from 0.487 million yesterday. ICE said that delivery notices were 29 contracts today and now total 151 contracts for the month.
Chart Trends:Trends in cotton are down with objectives of 82.80 and 80.40 July. Support is at 82.20, 81.70, and 81.00 July, with resistance of 85.10, 85.20, and 85.50 July.
General Comments: Futures closed higher. Some speculators are rolling positions or liquidating positions as First Notice Day is coming with the start of May as well. The growing conditions are getting better in many parts of Florida, and are expected to improve over time. Some good rains were seen in the state over the weekend, but drought conditions persist overall. Conditions should turn dry again through this weekend. Greening disease and what it might mean to production prospects continues to be a primary support item. Irrigation is widespread, even with recent rains. Temperatures are warm in the state. The Valencia harvest is continuing. Brazil is seeing near to above normal temperatures and dry weather.
Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average near to above normal.
Chart Trends: Trends in FCOJ are mixed. Support is at 141.00, 140.00, and 135.00 May, with resistance at 146.50, 150.50, and 152.00 May.
General Comments: Futures were a little higher in New York and Sao Paulo, but London was a little lower on some follow through selling. Prices in general have been weak as traders anticípate another big crop out of Brazil starting in summer, and bears note that improved rains should help increase Vietnamese production potential this year. Ideas are that supplies are good for now and can only increase down the road. Rains continue in Vietnam and crop conditions have improved. Current crop development is still good this year in Brazil, but it has been dry for the past week. Production ideas remain big there. Central America crops are mostly harvested and is too dry for new crop flowering. Colombia is reported to have good conditions.
Overnight News: Certified stocks are lower today and are about 2.739 million bags. ICE delivery notices are 15 contracts today and now total 137 contracts for the month. The ICO composite price is now 128.85 ct/lb. Brazil should get mostly dry conditions. Temperatures will average near to above normal. Colombia should get scattered showers, and Central America and Mexico should get mostly dry conditions. Temperatures should average near to above normal. Vietnam exported 110,000 tons of coffee in April, 30.4% less than in March.Year- to-date exports are now 974,000 tons, from 928,000 tons last year.
Chart Trends: Trends in New York are mixed to up with objectives of 145.00 and 151.00 July. Support is at 137.00, 134.00, and 131.00 July, and resistance is at 142.00, 145.00, and 147.00 July. Trends in London are down with objectives of 1950 July. Support is at 1985, 1970, and 1955 July, and resistance is at 2025, 2035, and 2050 July. Trends in Sao Paulo are mixed. Support is at 168.00, 166.00, and 163.00 September, and resistance is at 171.00, 173.00, and 175.00 September.
General Comments: Futures closed lower and broke down out of the trading range. Traders remain bearish on supplies, and this has hurt New York prices. London traders note that the spread between the two markets makes sugar processing profitable and that white sugar supplies should be large as well. However, London prices are holding better than those in New York for now. Traders are keeping an eye on developments in Brazil and expect big production as the harvest moves forward. Brazil mills could concentrate on ethanol production first and sugar production second, and that could create some short term shortages for the market. Chart patterns are turning down for the short term.
Overnight News: Mostly dry conditions are expected in Brazil. Temperatures should average near to above normal.
Chart Trends: Trends in New York are down with objectives of 1725 and 1610 July. Support is at 1710, 1680, and 1650 July, and resistance is at 1760, 1780, and 1800 July. Trends in London are mixed to down with objectives of 486.00 and 481.00 August. Support is at 496.00, 494.00, and 491.00 August, and resistance is at 508.00, 513.00, and 516.00 August.
General Comments: Futures closed little changed in consolidation trading. Chart patterns suggest further rallies could be coming and fundamentals for the short term could support the charts as demand has been better than trade expectations. But, short term charts show that a small top could be developing that might lead to a correction before any further rallies. The flow of Cocoa from western Africa is less, and traders wonder about the quality and size of the mid-crop after some hot and dry weather during the growing season. However, weather has improved in western Africa lately with more rain and somewhat cooler temperatures. Ideas are that production in West Africa could be less next crop year as well despite the improved weather as farmers have not liked offered prices. The mid-crop harvest is underway, and less than expected production along with smaller beans is reported. Malaysia and Indonesia crops appear to be in good condition and weather is called favorable.
Overnight News: Scattered showers are expected in West Africa. Temperatures will average near to above normal.Malaysia and Indonesia should see episodes of isolated showers. Temperatures should average near normal. Brazil will get mostly dry conditions and warm temperatures. ICE certified stocks are lower today at 4.714 million bags. ICE said 0 delivery notices were posted against May contracts today and that total deliveries are now 727 contracts.
Chart Trends: Trends in New York are mixed to up with objectives of 2370 and 2530 July. Support is at 2295, 2275, and 2255 July, with resistance at 2350, 2385, and 2400 July. Trends in London are mixed to up with objectives of 1580 and 1670 July. Support is at 1535, 1525, and 1490 July, with resistance at 1570, 1590, and 1610 July.
DJ Asian Cocoa Grindings Fell 10.8% in the First Quarter
Asian grindings fell 10.8% on the year in the first three months of 2013, to 140,062 metric tons, the Cocoa Association of Asia said on Wednesday.
Cocoa grindings, a measurement of the amount of beans processed, are viewed as a barometer of chocolate demand by the industry.
Cocoa grindings in the first quarter of 2012 totaled 157,000 metric tons, according to the industry group, whose members include Olam International Ltd. (O32.SG), as well as units of Nestle SA (NESN.VX), Barry Callebaut AG (BARN.EB) and Hershey Co. (HSY), according to its website. The figures reflect cocoa grinding in Malaysia, Singapore and Indonesia.
First-quarter cocoa grindings in North America, reported last week, rose unexpectedly by 5.8%, and fell 3.9% in Europe, the world's biggest per capita chocolate-consuming region.