General Comments: Futures were lower on speculative selling. Arabica cash markets seem quiet right now and roasters in the U.S. are showing little interest in buying. There is talk of increasing offers of Robusta from producers as they apparently did not sell when prices were much higher. However, the Arabica market does not show any real changes. Most sellers, including Brazil, are quiet and waiting for differentials or futures to get stronger, and mostly are waiting for futures to move higher. Buyers are waiting for prices to drop even more, but will buy if the differentials offered are good. Brazil weather is forecast to show some showers for this week, but no cold weather. Current crop development is still good this year in Brazil. Central America crops are too dry for good new crop flowering. Colombia is reported to have good conditions.
Overnight News: Certified stocks are little changed today and are about 2.750 million bags. The ICO composite price is now 121.85 ct/lb. Brazil should get dry weather. Temperatures will average near to above normal. Colombia should get scattered showers, and Central America and Mexico should get mostly dry conditions away from some showers in Eastern Mexico and northern Central America. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed. Support is at 125.00, 122.00, and 119.00 July, and resistance is at 133.00, 135.00, and 138.00 July. Trends in London are mixed to down with no objectives. Support is at 1870, 1855, and 1830 July, and resistance is at 1895, 1920, and 1930 July. Trends in Sao Paulo are mixed. Support is at 153.00, 150.00, and 147.00 September, and resistance is at 161.50, 166.00, and 170.00 September.
General Comments: Futures were higher on ideas of increased demand concerns, but closed off the highs on what appeared to be some speculative profit taking after the significant rally of the last couple of days. Mills were reported to be the best buyers. Trends turned mixed with the price action this week. Ideas of good weather for US crops are still around and were supported in part by the USDA reports released yesterday afternoon. Speculators and mills were said to be the best buyers. Traders are worried about Chinese demand as the economy there shows signs of slowing down. US economic data has been improving. The weather has improved in all areas with some precipitation in Texas areas and drier weather in the forecast for the next few days for the Delta and Southeast. Dry weather is forecast for the Delta and Southeast, and warm weather is expected in Texas this week. Ideas are that farmers can get a lot of planting done with dry and warm conditions. Weather for Cotton appears good in India, Pakistan, and China.
Overnight News: The Delta and Southeast will see dry conditions or afternoon showers through the weekend, with best rain chances over the middle of the week. Temperatures will average near to above normal. Texas will get dry weather or a few showers. Temperatures will average near to below normal. The USDA spot price is now 80.22 ct/lb. ICE said that certified Cotton stocks are now 0.520 million bales, from 0.518 million yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 81.70, 81.00, and 80.55 July, with resistance of 85.70, 86.40, and 86.90 July.
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