Sugar falls as production continues to show surplus

SUGAR        

General Comments:  Futures closed lower in response to news of big production potential in Brazil and disappointing economic data from China.  Traders remain bearish on supplies, especially from Brazil, and this has hurt New York prices.  The ISO is still calling for a production surplus of up to 8.5 million tons this year.  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.  Sugar producers in Russia said that the planting pace has turned slow there as producers wrestle with high costs of production against falling domestic and world prices.  Chart patterns are mixed 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 mixed.  Support is at 1725, 1710, and 1680 July, and resistance is at 1780, 1800, and 1835 July.  Trends in London are mixed.  Support is at 497.00, 496.00, and 491.00 August, and resistance is at 510.00, 513.00, and 516.00 August.

COTTON

General Comments:  Futures were lower in response to disappointing economic data released here and in China.  Demand for clothes could be cut due to less than expected data, and this hurt cotton futures.  Rains are moving through the Delta and Southeast through this weekend to slow planting progress, and Texas is turning cold again.  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.  So far, planting of all crops is slow.  Short term trends are trying to turn down.

Overnight News:  The Delta and Southeast will see rains through the weekend.  Temperatures will average near to above normal today, then near to below normal.  Texas will get mostly dry weather, but a few showers are expected today.  Temperatures will average below normal.  The USDA spot price is now 78.91 ct/lb.  ICE said that certified Cotton stocks are now 0.517 million bales, from 0.516 million yesterday.  ICE said that delivery notices were 19 contracts today and now total 545 contracts for the month.  USDA said that net Upland Cotton export sales were 314,400 bales this year and 87,500 bales next year.  Net Pima sales were 9,600 bales this year and 100 bales next year.

Chart Trends:  Trends in Cotton are mixed.  Support is at 82.85, 82.20, and 81.70 July, with resistance of 84.90, 85.20, and 86.30 July.

Next page: Orange juice, Coffee and Cocoa

Page 1 of 2 >>
Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome