Coffee gains after buyers step up despite good weather in Brazil

COFFEE (NYBOT:KCZ13)

General Comments: Futures were higher again, with industry in the U.S. showing more interest in buying. Speculators are buying as well. Industry got more interested after the market did not keep going down despite good weather in Brazil. Now rains are coming to promote good flowering for the next crop. Coffee is available in Central America as farmers and mills clear inventories before the next harvest. New crop is now being offered and the last of the old crop is getting moved. Colombia is offering Coffee into the cash market at steady differentials. Current crop development is still good this year in most production areas of Latin America. Central America crop conditions are said to be good overall. Colombia and the rest of the Andes countries are reported to have good conditions. Vietnam is seeing some flooding rains in production areas, but production estimates remain high and between 25 and 27 million bags. Another tropical storm is forecast to hit the country this weekend or next week and could cause more damage.

Overnight News: Certified stocks are lower today and are about 2.776 million bags. The ICO composite price is now 112.41 ct/lb. Brazil should get dry weather this week and scattered showers most of the weekend. Temperatures will average near to above normal early in the week and near to below normal late in the week. 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 114.00, 111.00, and 108.00 December, and resistance is at 119.00, 121.00, and 122.00 December. Trends in London are mixed. Support is at 1660, 1630, and 1600 November, and resistance is at 1700, 1720, and 1735 November. Trends in Sao Paulo are mixed. Support is at 137.00, 134.00, and 131.00 December, and resistance is at 142.50, 145.50, and 148.50 December.

COTTON (NYBOT:CTV13)

General Comments: Futures closed mixed after big rains were reported in southeastern production areas over the weekend. The crop is late this year, but might have sustained some damage with the big rains last week. The late crop is also affecting price action for the October contract that is now in delivery. No deliveries have been reported so far, and usually there is some of the crop from South Texas available. Not so far this year. US crop conditions right now are generally good with moderate to warm temperatures and dry conditions in the forecast for Texas this week and dry weather in the forecast for the Delta and Southeast. The weather forecasts and the crop progress and condition reports offer no concerns for production at this time.

Overnight News: The Delta and Southeast will see showers tomorrow, otherwise dry weather. Temperatures will average above normal. Texas will see dry weather. Temperatures will average above normal. The USDA spot price is now 81.09 ct/lb. ICE said that certified Cotton stocks are now 0.014 million bales, from 0.015 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 84.10, 83.70, and 83.55 December, with resistance of 85.10, 85.50, and 85.80 December.

Next page: Orange juice, Sugar and Cocoa

Page 1 of 2 >>
Comments
comments powered by Disqus