About The Author

Jack Scoville

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

COTTON
General Comments: Futures were a little lower in correction trading as a tropical system is about to form in the Gulf of Mexico and could hurt Cotton production in the Southeast and Delta next week. Showers are falling in Texas and in the Delta right now. The Southeast is also getting scattered showers. The demand is expected to be strong from Asian countries as world economies recover from Covid lockdowns. Analysts say the demand is still very strong and likely to hold at high levels for the future. However, the expansion of the Delta variant has given pause to the better demand ideas due to fears of economies here and around the world starting to partially lock down again. Production ideas are being impacted in just about all areas due to the weather extremes. It has been very hot in parts of Texas and the Delta and Southeast have had drenching rains at various times in the last couple of months.
Overnight News: The Delta will get isolated showers and near to above normal temperatures and Southeast will get isolated to scattered showers and near to above normal temperatures. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 92.09 ct/lb. ICE said that certified stocks are now 76,321 bales, from 76,583 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 9240, 9180, and 9100 December, with resistance of 9600, 9670 and 9720 December.

DJ On-Call Cotton – Aug 27
As of Aug 21. On-call positions represent spot cotton sold to or
purchased from a merchant, based on New York cotton futures contracts
of 500-pound bales. Prices are not yet fixed against these contracts.
Source: CFTC
*-denotes changes from the previous week are based on revised data from
last week.
Call Previous Change Call Previous Change
Sales Purchases
Jul 21 0 0 0 0 0 0
Oct 21 0 0 0 0 0 0
Dec 21 54,525 55,793 -1,268 18,837 19,293 -456
Mar 22 33,762 32,525 1,237 6,707 6,432 275
May 22 14,487 13,793 694 1,270 1,297 -27
Jul 22 35,963 34,925 1,038 4,885 4,410 475
Oct 22 0 0 0 0 0 0
Dec 22 6,507 7,939 -1,432 7,683 8,053 -370
Mar 23 1,416 1,504 -88 142 186 -44
May 23 53 53 0 0 0 0
Jul 23 89 53 36 0 0 0
Dec 23 75 75 0 1,040 1,040 0
Jul 24 0 0 0 220 220 0
Dec 24 0 0 0 220 220 0
Total 146,877 146,660 217 41,004 41,151 -147
Open Open Change
Int Int
Jul 21 0 0 0
Oct 21 335 329 6
Dec 21 157,485 157,148 337
Mar 22 61,406 58,393 3,013
May 22 15,860 13,990 1,870
Jul 22 13,785 13,025 760
Oct 22 4 3 1
Dec 22 16,934 17,003 -69
Mar 23 473 377 96
May 23 45 44 1
Jul 23 20 2 18
Dec 23 910 3 907
Jul 24 0 0 0
Dec 24 0 0 0
Total 267,257 260,317 6,940

FCOJ
General Comments: FCOJ closed higher yesterday as a ewe tropical storm has formed and appears headed for the Gulf of Mexico. The storm appears likely to miss most if not all of Florida but some buying is appearing just in case. Temperatures are now at or above seasonal averages in Brazil after a freeze even a few weeks ago. Weather conditions in Florida are rated mostly good for the crops. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition.
Overnight News: Florida should get scattered showers. Temperatures will average near to above normal. Brazil should get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in FCOJ are up with no objectives. Support is at 139.00, 135.00, and 131.00 September, with resistance at 147.00, 150.00, and 153.00 September.

COFFEE
General Comments: New York and London closed a little higher in range trading. London was the stronger market again. London is having trouble sourcing Coffee from Vietnam due to a shortage of containers to carry the Coffee out of the country. Prices in New York have stayed firm as the current Brazil harvest starts to wind down with smaller production. Brazil forecasts call for above normal temperatures for at least the next week, but the damage from the freeze a couple of weeks ago is easy to see. The dry weather is helping to keep the flowers from appearing. It is flowering time for the next crop and the flowers were frozen a few weeks ago and will drop off the trees. Some trees were killed and will have to be replaced. It is also harvest time but the harvest is almost done. The current outlook calls for 10 days of dry weather which will not support the flowering but will keep the harvest active. Improved showers are now in the forecast for Southeast Asia. Good conditions are reported in northern South America and good conditions reported in Central America. Colombia is having trouble exporting Coffee due to protests inside the country. Conditions are reported to be generally good in parts of Africa, but Ivory Coast and Ghana have been a little dry.
Overnight News: ICE certified stocks are higher today at 2.165 million bags. The ICO daily average price is now 165.56 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 179 contracts were tendered for delivery against September futures and that total deliveries for the month are now 1,030 contracts.
Chart Trends: Trends in New York are mixed to up with objectives of 189.00 and 195.00 December. Support is at 182.00, 178.00, and 176.00 December, and resistance is at 190.00, 203.00 and 212.00 December. Trends in London are mixed to up with objectives of 2050 and 2110 November. Support is at 1890, 1870, and 1830 November, and resistance is at 2000, 2030, and 2060 November.

SUGAR
General Comments: New York and London were a little lower in correction trading as the reduced production potential from Brazil is still impacting the market. Demand for Sugar has been weaker. Ideas are that the Brazil freeze hit one million hectares of Sugar area and that the world will have a deficit production for the coming year. Consumption of Sugar remains on the light side. Fears that the Covid is returning and could reduce economic activity and demand held sway. The market is still working through a short supply. The freeze and drought damage is there in Brazil as industry sources have said to expect a short season for processing. There is little White Sugar left in India for the export market but monsoon rains are promoting good conditions for the next crop. Thailand is expecting improved production. Ethanol demand is returning to the market as more world economies open up after the pandemic, but renewed Ethanol demand is now in doubt with weaker Crude Oil futures and covid pandemic fears as the Delta variant spreads.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed. Support is at 1930, 1890, and 1840 October, and resistance is at 1990, 2000, and 2040 October. Trends in London are down with objectives of 473.00, 454.00, and 434.00 October. Support is at 470.00, 465.00, and 460.00 October, and resistance is at 487.00, 491.00, and 501.00 October.

COCOA
General Comments: New York and London closed a little higher. Buying came from speculators. Ivory Coast has stopped selling for the next crop on fears of less supplies. The grind data was released recently and showed a strong recovery from the Covid times. World economies are starting to reopen after Covid and the open economies are giving demand the boost. The weather has had below normal rains in West Africa and crop conditions are rated good for now but there is concern about the lack of rain. Some are forecasting less production in the coming year.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be above normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near to above normal temperatures. ICE certified stocks are lower today at 5.596 million bags. ICE said that 265 contracts were posted for delivery against September futures and that total deliveries for the month are now 993 contracts.
Chart Trends: Trends in New York are mixed. Support is at 2540, 2530, and 2500 December, with resistance at 2650, 2680, and 2710 December. Trends in London are mixed to down with objectives of 1760 and 1730 December. Support is at 1770, 1750, and 1710 December, with resistance at 1800, 1810, and 1840 December.

Questions? Ask Jack Scoville today at 312-264-4322