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:  Cotton was lower on a stronger US Dollar and weaker US stock market and as speculators worried that inflation and central bank actions to counter inflation could hurt demand.  The trade is also worried about Chinese demand due to the Covid lockdowns there.  Support came from dry weather forecasts for the Great Plains and on news late last week that India has waived import taxes on Cotton until September.  India will now increase imports as world and US Cotton is now lower cost to importers.  Much of the western parts of the Great Plains have missed out on recent precipitation events and are likely to miss out again this week although there will be a little rain in the region.  Production of the next US crop is at risk now.  There was talk about less demand for the market in part from Fed moves to control the inflation now seen in the US and around the world.  Traders are getting worried about a potential recession caused by Fed tightening.  China could be imports due to Covid and is also closing down a number of cities as the Covid spreads through the nation.  China has been buying even with the port closures and domestic difficulties caused by renewed Covid lockdowns.  Traders are worried about Chinese demand moving forward.

Overnight News:  The Delta will get mostly dry conditions and near to above normal temperatures and the Southeast will get scattered showers and above normal temperatures.  Texas will have mostly dry conditions and below normal temperatures.  The USDA average price is now 130.41 ct/lb.  ICE said that certified stocks are now 1,101 bales, from 1,101 bales yesterday.  ICE said that 0 notices were posted for delivery against May contracts and that total deliveries for the month are now 0 contracts.  USDA said that Cotton is now 12% planted, from 10% last week, 12% last year, and 11% average.

Chart Trends:  Trends in Cotton are down with objectives of 131.00 July.  Support is at 13230, 13020, and 12420 May, with resistance of 13670, 14800 and 14130 May.

FCOJ

General Comments:  FCOJ was lower yesterday on speculative selling seen in most commodities markets due to inflation concerns.  Inflation and central bank actions to counter inflation have many concerns about how consumers will be affected and what the buying power of consumers might be in the end.  The market now knows it is short Oranges and short juice production but is also worried about domestic demand destruction as pills are becoming cheaper again.  The greening disease has taken its toll on the US crop and the previous Brazil crop was down significantly due to drought.  Trends are still up on the daily charts.  The weather remains generally good for production around the world.  Brazil has some rain and conditions are rated good, but it is drier now and some tree stress could develop soon.  Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures.

Overnight News:  Florida should get isolated showers.  Temperatures will average near to above normal.   Brazil should get isolated showers and near normal temperatures.

Chart Trends:  Trends in FCOJ are mixed.  Support is at 173.00, 169.00, and 164.00 May, with resistance at 180.00, 194.00, and 196.00 May.

COFFEE 

General Comments New York and London closed lower in response to concerns aout inflation and what the entral banks might do to counter inflationary tendencies.  Ideas are that demand could get hurt as inflation and central bank actions hurt buying power from consumers..  Deliveries from Vietnam and Brazil Robusta are noted to be decreasing as the harvest is now complete.  Indonesian offers are increasing due to plentiful stocks inside the country.  Arabica deliveries from Brazil are less in part due to less production and in part due to a stronger Real that has cut prices paid to farmers inside the country.  Less deliveries are reported from Vietnam now as producers have sold most of the crop and are holding the rest and waiting for higher prices.  Good growing conditions for the next crop in Brazil are still around but flowering is reported to be uneven this year in at least some areas. 

Overnight News:  ICE certified stocks are higher today at 1.109 million bags.  The ICO daily average price is now 199.92 ct/lb.  Brazil will get mostly dry conditions with above normal temperatures.  Central America will get scattered showers.  Vietnam will see scattered showers.  ICE NY said that 3 delivery notices were tendered against May contracts and that total deliveries for the month are now 358 contracts.

Chart Trends:  Trends in New York are mixed.  Support is at 218.00, 213.00, and 210.00 July, and resistance is at 225.00, 230.00 and 233.00 July.  Trends in London are mixed.   Support is at 2060, 2030, and 1990 July, and resistance is at 2100, 2130, and 2140 July.

SUGAR               

General Comments:  New York and London were both lower again yesterday.  Speculators were worried about inflation and what actions the central banks could take to combat it.  Ideas are that consumer demand could be hurt.  The US Dollar was strong and has been strong to drive up the price in local currencies of the importers.  Increased offers from India and Thailand are expected if the market continues to rally.  Pakistan is also increasing its offers due to good crops there.  The US government is permitting refiners to blend 15% ethanol into the fuel mixtures instead of 10% for the coming Summer.  India and Thailand expect improved crops this year.  Thailand expects to produce about10 million tons of sugar this year, up 33% from last year.  India said it could produce more than 9.0 million tons of Sugar.  Brazil could also have better Sugarcane production this year but the strengthening Real implies that most of the refining will be for Ethanol and not Sugar.

Overnight News:  Brazil will get mostly dry conditions.  Temperatures should average above normal.  India will get isolated showers in eastern areas and near to above normal temperatures.  USDA said that Sugarbeets were 11% planted, from 7% last week, 41% last year, and 29% average.

Chart Trends: Trends in New York are down with no objectives.  Support is at 1880, 1850, and 1810 July and resistance is at 1930, 1950, and 1990 July.  Trends in London are down with no objectives.  Support is at 515.00, 508.00, and 499.00 August and resistance is at 528.00, 529.00, and 542.00 August.

COCOA                                                                                 

General Comments New York and London closed lower again yesterday and the trends are down on the charts.  The weather is good for harvest activities in West Africa, but some are concerned about dry weather that could affect the yields for the midcrop harvest.  Some showers are in the forecast for West Africa and have been for several weeks, but the precipitation was less than normal last week and net drying is reported.  The weather is good in Southeast Asia.  Ghana arrivals have been below year ago levels, but Ivory Coast arrivals are ahead of last year.

Overnight News:  Scattered showers are forecast for West Africa.  Temperatures will be near to above normal.  Malaysia and Indonesia should see scattered showers.  Temperatures should average above normal.  Brazil will get mostly dry conditions and near to above normal temperatures.  ICE certified stocks are higher today at 5.056 million bags.  ICE said that 96 notices were posted for delivery against May contracts and that total deliveries for the month are now 202 contracts.

Chart Trends:  Trends in New York are mixed to down with objectives of 2400 May.  Support is at 2400, 2380, and 2350 May, with resistance at 2520, 2570, and 2650 May.  Trends in London are mixed to down with objectives of 1710, 1670, and 1660 May.  Support is at 1710, 1700, and 1670 May, with resistance at 1750, 1770, and 1790 May.

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