General Comments: Futures were a little lower again as the real in Brazil weakened against the U.S. dollar. Traders remain bearish as well in reaction to the UNICA data that showed good processing continuing and most mills in Brazil still operating. The data showed that more sugar will be coming to the market even though many processors are producing a little more ethanol than sugar. Chart trends remain generally down. Meanwhile, countries like India and Thailand are selling as much as possible. Traders have noticed that the world still has plenty of sugar available and that the demand is not very strong. Weather conditions in key production areas around the world are rated as mostly good. There has not been any news of losses to sugar areas in Vietnam and China in the wake of the storm that moved into those countries after devastating Philippines. Traders are also watching weather in the Bay of Bengal where more rain could hurt some sugar production potential.
Overnight News: Brazil could see showers with near to above normal temperatures.
Chart Trends: Trends in New York are down with objectives of 1775 March. Support is at 1780, 1770, and 1750 March, and resistance is at 1825, 1850, and 1880 March. Trends in London are down with objectives of 457.00 March. Support is at 468.00, 465.00, and 463.00 March, and resistance is at 478.00, 484.00, and 490.00 March.
General Comments: Futures closed higher on the data from USDA that continued to show that the Cotton harvest progress was much behind normal. The delayed harvest is due to the delayed planting in the Spring. Good weather in US productions areas should be replaced by scattered showers over the weekend, but the crop should remain in good condition as the rains are not expected to be big. It will turn warmer this weekend after a very cold week. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas. The Delta and Southeast are reporting generally favorable conditions as well.
Overnight News: The Delta and Southeast will see dry weather this week and light precipitation this weekend. Temperatures will average below normal this week, but near to above normal this weekend. Texas will see dry weather this week and light precipitation this weekend. Temperatures will average below normal, but will trend to near to above normal this weekend. The USDA spot price is 75.34 ct/lb. today. ICE said that certified Cotton stocks are now 0.1892 million bales, from 0.190 million yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 77.60, 75.90, and 75.30 December, with resistance of 78.50, 78.80, and 79.00 December.