Sugar falls on weaker Brazilian real as harvest delayed

SUGAR  

General Comments: Futures closed lower on a weaker Brazilian Real. Ideas are that mills had not had time to amass more sugar due to a delayed harvest in Brazil because of rains and also because they are concentrating on producing ethanol. Futures might try to work lower this week. There is still talk that a low is forming or has formed for at least the short term, but there is still a lot of Sugar around, and not only from Brazil. The Indian monsoon is off to a good start and this should help with Sugarcane production in the country. But, everyone is more interested in Brazil and what the Sugar market is doing there. Traders remain bearish on ideas of big supplies, especially from Brazil. Traders in Brazil expect big production to continue as the weather is good.

Overnight News: Showers are expected in Brazil, mostly in the south and southwest. Temperatures should average near to above normal.

Chart Trends: Trends in New York are mixed to down with objectives of 1640 and 1580 October. Support is at 1650, 1620, and 1600 October, and resistance is at 1690, 1715, and 1750 October. Trends in London are mixed to down with objectives of 475.00, 465.00, and 448.00 October. Support is at 476.00, 475.00, and 470.00 October, and resistance is at 490.00, 496.00, and 499.00 October.

COTTON

General Comments: Futures were higher after holding support on the charts. It was a low volume session with the holiday this week. Futures held the short term range. It is possible that futures can work lower again as demand has turned soft. Ideas of better production conditions in the US caused some selling interest. Texas is reporting light precipitation, mostly in southern areas. Dry weather is being reported in the Delta and showers and storms are seen in the Southeast. The weather should help support crop development in the Delta and Southeast, and could help in Texas. Weather for Cotton appears good in India, Pakistan, and China.

Overnight News: The Delta should be dry and Southeast will see showers and rains. Temperatures will average near to below normal this week, but near to above normal this weekend. Texas will get a few showers early this week, but will be mostly dry. Temperatures will average near to below normal, but near normal this weekend. The USDA spot price is now 82.55 ct/lb. ICE said that certified Cotton stocks are now 0.623 million bales, from 0.623 million yesterday. ICE said that 145 notices were posted today and that total deliveries are now 2,462 contracts.

Chart Trends: Trends in Cotton are mixed . Support is at 85.10, 84.00, and 82.80 October, with resistance of 86.70, 86.90, and 88.00 October.

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