Jack Scoville is an often quoted market analyst in the grain and soft commodities sectors. You will find his commentary throughout the Reuters, Wall Street Journal, Dow Jones, Bloomberg, and Barron's publications. Contact Mr. Scoville at (312) 264-4322
General Comments: Cotton was slightly lower in consolidation trading. Trends started to turn down due to the price action this week. Ideas are that the weather is good for maturing crops and harvest activities, but the harvest pace was very slow last week. The harvest ahead seems to be the most important factor as USDA is expecting a huge crop, but storms have damaged production potential since the last report and USDA weekly condition reports have reflected some deterioration. The charts suggest that futures can trade between 6500 and 7500 for a while, so for now futures appear headed for a test of the lower end of the projected trading range. Bolls are opening and harvest is expanding under relatively good conditions as it has been relatively dry.
Overnight News: The Delta and the Southeast should be mostly dry this week, then the Southeast should see some precipitation this weekend. Temperatures should average above normal. Texas will see chances for showers today and Thursday, otherwise dry conditions. Temperatures will be near to above normal. The USDA average price is now 66.19 ct/lb. ICE said that certified stocks are now 3,827 bales, from 3,860 bales yesterday. ICE said that 4 contracts were posted for delivery against October futures and that total deliveries for the month are now 26 contracts.
Chart Trends: Trends in Cotton are mixed to down with objectives of 6740 and 6580 December. Support is at 6740, 6700, and 6660 December, with resistance of 6850, 6930, and 6970 December.
General Comments: FCOJ closed higher on follow through buying on ideas that the crop losses in Florida are very big. Ideas remain that the Orange groves are badly damaged in Florida due to Irma. New reports from growers associations suggest that crops in many areas were almost completely destroyed. Other areas suffered losses of 50% or more of the crop. Some growers say that trees will be stressed again next year due to the winds and rains from Irma. Florida weather is now drier. The demand side remains weak and there are plenty of supplies in the US. Trees that are still alive now are showing fruit of good sizes, although many have lost a lot of the fruit. Brazil crops remain in mostly good condition and production estimates are climbing after recent rains.
Overnight News: Florida should get daily chances for showers and storms and near to above normal temperatures. Some big rain totals are possible. Brazil should get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 150.00, 146.00, and 142.00 November, with resistance at 157.00, 159.00, and 160.00 November.
General Comments: New York closed lower once again and London closed a little higher once again as traders talked about the recent precipitation in Coffee areas of Brazil. The rains would promote flowering for the next crop and might save some flowers that came from some early rains several weeks ago. There should be enough precipitation to create new flowering in the next week or so, and some expect very good flowering to be seen. Some producers expect a very good flowing after the rain, while others say the rains were not enough. FC Stone in Brazil toured Coffee areas last week and noted defoliation of the trees. The problem was severe enough that they do not appear ready to Support ideas of top production for the coming year, perhaps no matter how good it rains from no one. The weather in Brazil and the condition of the trees is getting attention as La Nina is coming and Coffee areas are already dry. These rains should mark the end of the dry season and the start of the rainy season. There will be a lot of talk about the rains and what it means to production potential for the next few weeks.. The cash market remains quiet and tight. Production for the next crop is offered in Central America as the harvest has started.
Overnight News: Certified stocks are higher today and are about 1.820 million bags. The ICO composite price is now 119.80 ct/lb. Brazil will get mostly dry weather. Temperatures should average near to above normal. Colombia should get scattered to isolated showers. Central America and southern Mexico should get scattered showers. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed to down with no objectives. Support is at 126.00, 119.00, and 116.00 December, and resistance is at 130.00, 133.00 and 136.00 December. Trends in London are mixed to up with objectives of 2030 and 2090 November. Support is at 1990, 1960, and 1950 November, and resistance is at 2040, 2060, and 2080 November.
General Comments: Futures were lower in both New York and London and remain near support areas on the charts. Even professional Sugar traders do not seem sure of what to do, although the fundamental side of the market is not apparently price positive due to ideas of big world production. There were more rains in Brazil production areas through the weekend, and some good rains were reported in southern growing areas. The rains were welcome as it has been hot and dry. Drier weather is expected for the rest of the week and into the weekend. The rains come as the market thinks more and more about La Nina and the potential for drought in pasts of Brazil this year. Upside price potential is limited as there are still projections for a surplus in the world production,and these projections for the surplus seem to be bigger. Trends are sideways in both markets.
Overnight News: Brazil should feature warm and dry weather.
Chart Trends: Trends in New York are mixed. Support is at 1400, 1380, and 1350 March, and resistance is at 1470, 1490, and 1520 March. Trends in London are mixed. Support is at 359.00, 354.00, and 348.00 December, and resistance is at 372.00, 375.00, and 384.00 December.
General Comments: Futures closed higher and made new highs for the move. New York December Contracts could now trade to or above 2100 in the near term. The rally is coming as both Ivory Coast and Ghana look for ways to increase prices paid to farmers. World production ideas remain high. Harvest reports show good to very good production will be seen this year in West Africa. Ghana also expects a good crop this year. Nigeria and Cameroon are reporting good yields on the initial harvest. The growing conditions in other parts of the world are generally good. East African could use more rain, but Cocoa is growing. Good conditions are still seen in Southeast Asia. Traders talk of increased demand to go against big world production as prices are now attractive for grinders and chocolate manufacturers. New grind data should be released later this month.
Overnight News: Scattered showers and storms are expected in West Africa. Temperatures will average near to above normal. Malaysia and Indonesia should see scattered showers in all areas. Temperatures should average near to above normal. Brazil will get mostly dry conditions or light showers and near to above normal temperatures. ICE certified stocks are lower today at 4.561 million bags.
Chart Trends: Trends in New York are mixed to up with objectives of 2090, 2100, and 2200 December. Support is at 2020, 2000, and 1990 December, with resistance at 2090, 2110, and 2130 December. Trends in London are mixed. Support is at 1520, 1480, and 1460 December, with resistance at 1570, 1590, and 1620 December.
Questions? Ask Jack Scoville today at 312-264-4322
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Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks. ©2017
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