Cocoa rises on holiday demand worries

COCOA (NYBOT:CCZ13)

General Comments: Futures closed higher in consolidation trading. The fundamentals are considered bullish, but chart action shows that much of the fundamental news might be part of the price. Worries are that there will not be enough Cocoa beans available for processing for end of the year holiday demand. Cocoa is between crops, and offers are light. Rains have returned to West Africa. Ideas are that crop conditions there are generally improving, but that already harvested beans can get moldy due in part to producer holding patterns and poor storage facilities. Ideas are that drought and hot temperatures seen earlier in the growing season has hurt bean size and yields. 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 normal. Malaysia and Indonesia should see scattered showers, but southern áreas could be dry. Temperatures should average above normal. Brazil will get mostly dry conditions and warm temperatures. ICE certified stocks are lower today at 4.265 million bags.

Chart Trends: Trends in New York are mixed. Support is at 2555, 2540, and 2510 December, with resistance at 2610, 2625, and 2650 December. Trends in London are mixed to down with no objectives. Support is at 1670, 1660, and 1650 December, with resistance at 1710, 1730, and 1750 December.

COTTON (NYBOT:CTZ13)

General Comments: Futures closed higher after a week of poor export sales. Worries about US production. Some short covering was noted on ideas that the crop is less than expected, in part due to the recent big rains. 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.

Overnight News: The Delta and Southeast will see mostly dry weather. Temperatures will average above normal. Texas will see dry weather. Temperatures will average above normal. The USDA spot price is now 82.23 ct/lb. ICE said that certified Cotton stocks are now 0.011 million bales, from 0.014 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 84.60, 84.10, and 83.70 December, with resistance of 85.50, 85.80, and 86.50 December.

Page 1 of 2 >>
Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome