General Comments: Futures moved lower. Growing conditions remain generally very good. Temperatures are warmer again in Texas, but some very beneficial precipitation has been seen in the last couple of weeks and production ideas are generally high. Conditions in Alabama, Mississippi, and Missouri are good after some big rains earlier in the growing season. Export sales have been on the weak side lately as the buy side of the market waits for prices to work lower. World production ideas are also high. Weather for Cotton still appears good in India, Pakistan, and China. Overall, it looks like futures have made some short term tops and can now slide lower into harvest. How low prices go will depend on the demand side of the market now. Traders will continue to watch the world economy for clues. US economics are general improving but remain somewhat mixed. China and Europe are having a tougher time right now and these trends might continue for the next few months.
Overnight News: The Delta and Southeast will see showers off and on all week. Temperatures will average near to above normal. Texas will see dry weather this week and maybe some showers in the north. Temperatures will average above normal. The USDA spot price is now 81.23 ct/lb. ICE said that certified Cotton stocks are now 0.152 million bales, from 0.160 million yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 85.00, 84.30, and 84.00 October, with resistance of 86.00, 86.50, and 87.00 October.
General Comments: Futures closed lower. No one wants to sell much with the most active part of the hurricane season just in front of them, but the market has stalled and created some liquidation pressure. The tropics remain quiet for now. The bulk of the tropical Atlantic is seeing some very dry conditions and wind shear. Both phenomena have accounted for the lack of any significant tropical storm development. Growing conditions in the state of Florida remain mostly good. Showers and storms are reported and conditions are said to have improved in almost the entire state. Ideas are that the better precipitation will help trees fight the greening disease. Temperatures are warm. Brazil is seeing near to above normal temperatures and mostly dry weather, and there are reports of stress to trees and the potential for lower production. Brazil should produce enough to remain the number one world exporter, but traders there are worried after some losses were reported in Sao Paulo due to the dry weather until now and the very cold temperatures seen a couple of weeks ago.
Overnight News: Florida weather forecasts call for some showers, but mostly dry conditions. Temperatures will average near normal.
Chart Trends: Trends in FCOJ are down with objectives of 135.00 September. Support is at 140.00, 139.00, and 137.00 September, with resistance at 145.00, 147.00, and 148.00 September.
Next page: Coffee, Sugar and Cocoa
General Comments: Futures were higher in recovery trading after moving sharply lower on Thursday as Brazil weather was called good for production. The rain has stopped and warmer temperatures are in the forecast so speculators seem comfortable about selling again, but some covered positions on Friday. Some roaster buying was possible after the move to new lows as there are ideas that prices are near the lows that will be seen for a while. Coffee appears to be available in Central America despite the Roya as farmers and mills start to clear inventories before the next harvest. Robusta prices were higher on reports of light selling from producers and stronger basis levels. There are forecasts for a lot of rain to hit Southeast Asia Coffee areas this week, but no one appears concerned. Price action is weak despite the recovery on Friday. Current crop development is still good this year in most production areas of Latin America. Central America crops are seeing better rains than in the last couple of weeks, but many areas remain too dry, especially Nicaragua. Colombia is still reported to have good conditions.
Overnight News: Certified stocks are higher today and are about 2.752 million bags. The ICO composite price is now 116.58 ct/lb. Brazil should get dry conditions. Temperatures will average near to above normal. Colombia should get scattered showers, and Central America and Mexico should get showers, and rains. Temperatures should average near to above normal.
Chart Trends: Trends in New York are down with objectives of 112.00 September. Support is at 115.00, 112.00, and 110.00 September, and resistance is at 120.00, 122.00, and 125.00 September. Trends in London are mixed. Support is at 1860, 1850, and 1820 September, and resistance is at 1915, 1950, and 2000 September. Trends in Sao Paulo are mixed to down with objectives of 132.00 and 122.00 September. Support is at 141.00, 138.00, and 135.00 September, and resistance is at 144.00, 146.00, and 151.00 September.
General Comments: Futures closed higher in New York and higher in London. Speculators are still very short in this market and have decided to cover some of these positions as short term trends have turned up. There was some commercial buying noted as well as futures have held. Not much has changed otherwise in Sugar. Some buying has been noted in reaction to the falling Indian Rupee that makes it harder to believe that the country will export much. Many expect production to be higher overall in Brazil due to a record Sugarcane production, and countries like Thailand and India also expect more production this year. Less production of Sugar beets is reported from Russia and Ukraine as farmers there elected to plant more grains.
Overnight News: Brazil could see dry weather and moderate temperatures.
Chart Trends: Trends in New York are mixed. Support is at 1670, 1650, and 1635 October, and resistance is at 1710, 1715, and 1740 October. Trends in London are mixed. Support is at 486.00, 479.00, and 473.00 October, and resistance is at 494.00, 496.00, and 499.00 October.
General Comments: Futures closed lower on speculative long liquidation as short term chart trends turned down. There are reports of light rains in Ivory Coast, and the weather remains generally good in Africa, although some think it is still too dry. Nigeria would appear to have perhaps even a little too much rain right now, but there is talk that Ghana and Ivory Coast are still too dry. Temperatures are moderate. Production ideas are stable. Malaysia and Indonesia crops appear to be in good condition and weather is called favorable. However, more rain than normal is in the forecast for production areas and might damage crops. Price action is weak and the market has made a short term top.
Overnight News: Scattered and light 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 4.722 million bags.
Chart Trends: Trends in New York are mixed to down with objectives of 2220 September. Support is at 2260, 2250, and 2230 September, with resistance at 2315, 2330, and 2380 September. Trends in London are mixed to down with objectives of 1525 and 1470 September. Support is at 1535, 1515, and 1505 September, with resistance at 1590, 1610, and 1625 September.