General Comments: Futures were lower after the Brazilian government delayed announcement of its price support measures on Monday afternoon. Many who had covered positions in anticipation of the market returned to the sell side. It is possible the government will announce something today. Coffee appears to be available in Central America as farmers and mills start to clear inventories before the next harvest. Robusta prices were lower in London in sympathy with New York. Current crop development is still good this year in most production areas of Latin America and also appears to be mostly good now in Asia after some too dry or too wet weather at times earlier in the year. 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. Prices are in a range, but price action is weak.
Overnight News: Certified stocks are higher today and are about 2.762 million bags. The ICO composite price is now 116.67 ct/lb. The ICO estimates world 2012-13 production at 144.5 million bags. 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 115.00, 112.00, and 110.00 September, and resistance is at 121.00, 122.00, and 125.00 September. Trends in London are mixed. Support is at 1850, 1820, and 1795 September, and resistance is at 1905, 1915, and 1950 September. Trends in Sao Paulo are mixed to down with objectives of 132.00 and 122.00 September. Support is at 138.00, 135.00, and 132.00 September, and resistance is at 144.00, 146.00, and 151.00 September.
General Comments: Futures closed a little higher as traders noted the slow development of the crop. The poor planting conditions early in the year has made the crop progress behind normal. 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.
Overnight News: The Delta and Southeast will see showers off and on through the weekend, mostly in northern areas. Temperatures will average near to above normal. Texas will see dry weather this week and maybe a shower in the north. Temperatures will average above normal. The USDA spot price is now 81.73 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: Orange Juice, Sugar and Cocoa
General Comments: Futures closed lower on what appeared to be speculative long liquidation. The most active part of the hurricane season is here, but there are no storms on the horizon. The bulk of the tropical Atlantic is seeing some very dry conditions and wind shear to prevent 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 137.00, 135.00, and 133.00 September, with resistance at 142.00, 145.00, and 147.00 September.
General Comments: Futures closed mixed to slightly lower in consolidation trading. The fundamentals do not support any major rallies in the market, and 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. Some Sugarcane was damaged in the freezes of a couple of weeks ago, but the total losses are not clear and Price action suggests were not enough to change things very much. 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. Iraq bought 200,000 tons of White Sugar in its tender.
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 484.00, 479.00, and 473.00 October, and resistance is at 491.00, 494.00, and 496.00 October.
General Comments: Futures closed higher on follow through buying tied to 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 less offer 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.
Overnight News: Scattered showers are expected in West Africa. Temperatures will average near to above normal. Malaysia and Indonesia should see scattered showers, but southern areas could be dry. Temperatures should average above normal. Brazil will get mostly dry conditions and warm temperatures. ICE certified stocks are lower today at 4.674 million bags.
Chart Trends: Trends in New York are up with objectives of 2400 September. Support is at 2350, 2325, and 2310 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.