Sugar falls after Brazil triples sugar production

SUGAR

General Comments: Futures closed lower and made new lows for the move on reports of big production in April from Brazil. Traders remain bearish on supplies, especially from Brazil, and this has hurt New York prices. They got some big production and processing estimates for April on Monday. Traders are keeping an eye on developments in Brazil and expect big production as the harvest moves forward as the weather is good. Demand is said to be strong from North Africa and the Middle East as buyers get stocks in hand for Ramadan in July. Chart patterns are mixed, but weak, for the short term. UNICA said that Brazil crushed 41 million tons of Sugarcane and produced 1.69 million tons of Sugar. Both amounts are almost triple those of a year ago.

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 1670, 1610, and 1600 July July. Support is at 1680, 1650, and 1620 July, and resistance is at 1720, 1740, and 1755 July. Trends in London are down with no objectives. Support is at 476.00, 473.00, and 470.00 August, and resistance is at 487.00, 491.00, and 496.00 August.

COTTON

General Comments: Futures were higher after trading lower early in the session. Traders concentrated on economic news, which was disappointing for China but good for the US. China is the largest importer of US Cotton, so less than expected industrial production put demand bulls on the defensive. The new crop months were weaker on forecasts for warm and dry weather in many US production areas that will promote active planting by farmers this week. Ideas are that the demand can continue for now as China moves to increase its stocks and as private buyers there reject offers from the government due to quality and price. Planting conditions for the next crop remain a problem in the US. Dry weather is forecast for the Delta and Southeast, and much warmer weather is expected in Texas this week. So far, planting of all crops is slow, but ideas are that farmers can get a lot of planting done with dry and warm conditions. Short term trends are mixed.

Overnight News: The Delta and Southeast will see dry conditions. Temperatures will average near to above normal. Texas will get mostly dry weather with some showers possible in Eastern areas. Temperatures will average mostly above normal. The USDA spot price is now 81.87 ct/lb. ICE said that certified Cotton stocks are now 0.508 million bales, from 0.504 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 85.40, 85.00, and 83.00 July, with resistance of 87.60, 88.50, and 90.00 July.

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