Sugar falls as conditions drier in producing areas


General Comments: Futures were a little lower in range trading. Trends remain up on the charts, but price action suggests that a correction down could be coming soon. Drier weather has returned to production areas, but the harvest has been further delayed by recent rains. Heavier rains seen in the last few weeks could have hurt Sugar yields, but conditions are drier now. India also might have production problems as the monsoon has been slow to recede. It is starting to recede now, and India should still have more than enough production to allow for exports. However, a cyclone is entering the country this weekend and could hurt crops. There is talk of strong offers from Thailand, and Thai differentials are stable. Price action suggests that the rally is starting to stall, but there are still targets above the highs to go after yet.

Overnight News: Brazil could see mostly dry conditions and near to above normal temperatures.

Chart Trends: Trends in New York are mixed to up with objectives of 1880, 1900, and 1940 March. Support is at 1845, 1835, and 1825 March, and resistance is at 1870, 1880, and 1910 March. Trends in London are mixed to up with objectives of 511.00, 513.00, and 534.00 December. Support is at 493.00, 487.00, and 484.00 December, and resistance is at 501.00, 505.00, and 508.00 December.


General Comments: Futures closed lower on good weather and speculative selling as the potential for damage from a storm last weekend did not really materialize. The storm did not really make it to Southeast production areas. Growing conditions seem to be improving in the rest of the world. India is turning warmer and drier there this week after some big rains last week. Worries about Chinese production are also heard after some big typhoons passed near important production areas. This area is also turning drier this week. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas. Trends turned down on the charts with the price action this week.

Overnight News: The Delta will be dry and Southeast will see showers in the east, otherwise dry weather. All areas should be dry over the weekend. Temperatures will average above normal. Texas will see dry weather through Saturday, then light showers. Temperatures will average above normal. The USDA spot price is not available today. ICE said that certified Cotton stocks are now 0.017 million bales, from 0.014 million yesterday.

Chart Trends: Trends in Cotton are down with no objectives. Support is at 82.90, 82.10, and 81.70 December, with resistance of 84.20, 85.50, and 85.80 December.

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