Sugar drops as supply floods market

SUGAR (NYBOT:SBH14)

General Comments: Futures were lower again after trading both sides of unchanged. The primary focus of the market remains big supplies. Increased offers from India and Thailand combined with good supplies available from Brazil keep overall trends down. However, UNICA said earlier in the week that the crush in the second half of November was down, and it could be that the big offer from Brazil and the big harvest there is starting to wind down. The market needs some demand news, but has had trouble finding any demand outside of normal. Chart trends remain down in New York and London, but both have traded in a range the last few sessions and could be trying to form a bottom for at least the short term. Weather conditions in key production areas around the world are rated as mostly good.

Overnight News: Brazil could see showers and near to above normal temperatures.

Chart Trends: Trends in New York are mixed to down with no objectives. Support is at 1640, 1610, and 1580 March, and resistance is at 1685, 1700, and 1715 March. Trends in London are mixed to down with objectives of 446.00 March. Support is at 446.00, 440.00, and 434.00 March, and resistance is at 454.00, 460.00, and 465.00 March.

COTTON (NYBOT:CTH14)

General Comments: Futures closed higher on what was called chart based buying. Some buy stops were hit as futures broke resistance areas at about 82.00 March and as chart trends turned up. The good economic data released Friday in the US and this week in China has helped support demand ideas. The data implied that demand for clothes can increase as more and more people go back to work here and that the Chinese economy is still in mostly good condition. Brazil conditions are reported to be very good in Bahia. Harvest in the US should be about done now as winter moves south. Charts show that the market completed a major low.

Overnight News: The Delta and Southeast should see dry conditions. Temperatures will average below normal this week and near normal this weekend. Texas will see dry conditions. Temperatures will average below normal this week and near normal this weekend. The USDA spot price is 79.31 ct/lb. today. ICE said that certified Cotton stocks are now 0.081 million bales, from 0.088 million yesterday. USDA said that net Upland Cotton export sales were 174,100 bales this year and 400 bales next year. Net Pima sales were 3,300 bales this year and 0 bales next year.

Chart Trends: Trends in Cotton are up with objectives of 8310, 8690, and 8940 March. Support is at 81.80, 80.95, and 80.50 March, with resistance of 83.20, 83.60, and 84.00 March.

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