Sugar mixed as traders wait on supply news

SUGAR (NYBOT:SBH14)

General Comments: Futures were mostly a little higher yesterday, but March was lower. There was not much in the way of demand news to support the market. In fact, there was not much news. Traders remain bearish on ideas of big supplies available to the cash market, and chart trends remain generally down as offers remain available. Countries like India and Thailand are selling as much as possible. No big demand reports have been seen in the press lately. 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, but some losses are possible. India could see some losses from unseasonal cyclone activity in the northeast and east part of the country. Weather in Brazil appears to be mostly good.

Overnight News: Brazil could see showers with near to above normal temperatures. China imported 709,873 tons of Sugar in October, up 108% from last year. Calendar year-to-date imports are now 3.6 million tons, up 8.5% from last year.

Chart Trends: Trends in New York are down with no objectives. Support is at 1750, 1735, and 1715 March, and resistance is at 1795, 1815, and 1825 March. Trends in London are down with objectives of 457.00 March. Support is at 466.00, 462.00, and 460.00 March, and resistance is at 472.00, 477.00, and 478.00 March.

COTTON (NYBOT:CTZ13)

General Comments: Futures closed higher but at the lower end of the trading range as traders waited for word on the potential Chinese sales from government reserves. China could delay the announcement and that would create new import interest there. There has been no announcement this week, but one had been expected. Wire reports indicate that some production has been lost in China after recent bad weather in some growing areas. Ideas are that the sales there would kill demand for imported Cotton, especially from the US. Scattered showers are in the forecast for late this week in eastern areas, but the crop should remain in good condition as the rains are not expected to be big. It will turn cold this weekend. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas amid dry weather. The Delta and Southeast are reporting generally favorable conditions as well.

Overnight News: The Delta and Southeast will see light precipitation late this week and a mostly dry weekend. Temperatures will average near to above normal this week and below normal this weekend. Texas will see on Thursday and Friday and a dry weekend. Temperatures will average near to above normal this week, but below normal this weekend. The USDA spot price is 74.39 ct/lb. today. ICE said that certified Cotton stocks are now 0.221 million bales, from 0.208 million yesterday. USDA said that net Upland Cotton export sales were 305,100 bales this year and 13,200 bales next year. Net Pima sales were 26,200 bales this year and 0 bales next year. China imported 141,157 tons of Cotton in October, down 48.1% from last year. Calendar year to date imports are now 3.4 million tons, down 21.7% from last year.

Chart Trends: Trends in Cotton are mixed. Support is at 75.20, 74.35, and 74.20 December, with resistance of 77.70, 78.50, and 78.80 December.

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