General Comments: Futures closed slightly higher in range trading. 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. 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 are reported and conditions are said to be very good in almost the entire state. 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.
General Comments: Futures closed a little higher in range trading. Traders seem to be getting ready for the USDA production reports next week. Informa released its estimates during the session. Informa estimated US 2013 cotton crop near 13.9 mil bales. The USDA July production estimate was 13.5 million bales. 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, mostly in northern areas. 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 81.29 ct/lb. ICE said that certified Cotton stocks are now 0.070 million bales, from 0.070 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.
Next page: Coffee, Sugar and Cocoa
General Comments: Futures were higher on news that the Brazilian government would announce its price support measures on Monday afternoon. However, the announcement was delayed until today or tomorrow. It seemed to be a short covering rally, and some of these positions could be put back on today. Coffee appears to be available in Central America 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. 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. Harvest conditions are good in Brazil.
Overnight News: Certified stocks are higher today and are about 2.754 million bags. The ICO composite price is now 118.06 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 mixed. Support is at 118.50, 115.00, and 112.00 September, and resistance is at 122.00, 125.00, and 126.00 September. Trends in London are mixed. Support is at 1885, 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 lower on what appeared to be speculative long liquidation. Speculators are selling again as the fundamentals do not support any major rallies in the market. Not much has changed 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. Demand for ethanol has been good, but there is still a lot of Sugar and the supply side fundamentals seem to overwhelm any demand side strength over time.
Overnight News: Brazil could see dry weather and moderate temperatures.
Chart Trends: Trends in New York are mixed to down with objectives of 1630, 1590, and 1580 October. Support is at 1650, 1635, and 1615 October, and resistance is at 1680, 1710, and 1715 October. Trends in London are mixed to down with objectives of 478.00 and 469.00 October . Support is at 479.00, 473.00, and 470.00 October, and resistance is at 487.00, 494.00, and 496.00 October.
General Comments: Futures closed much higher on ideas that dry weather has returned to West Africa and could hurt production. There are reports of light rains in Ivory Coast, and the weather remains generally good in Africa, although more rain would be very beneficial. Ghana and Ivory Coast are still too dry. Temperatures are moderate. Production ideas are stable, although some ideas are starting to drop again. Ivory Coast has sold a lot of its new crop Cocoa already so any reduced production would mean fewer offers at the end of the year when the harvest is most active. 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 4.709 million bags.
Chart Trends: Trends in New York are up with objectives of 2400 September. Support is at 2325, 2310, and 2260 September, with resistance at 2390, 2440, and 2500 September. Trends in London are up with objectives of 1690 September. Support is at 1580, 1555, and 1535 September, with resistance at 1625, 1640, and 1655 September.