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 higher last week and trends are trying to turn up in this market but so far the trends remain sideways. The trade is still worried about demand moving forward due to recession fears and Chinese lockdowns but is also worried about total US production potential. The USDA crop condition rating were a little lower again this week with the biggest problems still found in Texas. Conditions in Georgia and the rest of the Southeast and Delta appear to be mostly good to excellent. The Chinese had been reopening the economy and country lately as Covid faded, but some reports of a new variant found there could shut the country down again in the near term. The quarantine is one week now instead of one month as before. The cities of Shanghai, Shenzhen, and Wuhan are all subject to lockdowns of one type or another. It is possible that the continued Chinese lockdowns will continue to hurt demand for imported Cotton for that country and that a weaker economy in the west will hurt demand from the rest of the world. Current weather forecasts call for hot and dry conditions for much of the Great Plains including west Texas Cotton area.
Overnight News: The Delta will get isolated showers and above normal temperatures and Southeast will get scattered showers and near to above normal temperatures. Texas will have mostly dry conditions and above normal temperatures. The USDA average price is now 107.77 ct/lb. ICE said that certified stocks are now 5,813 bales, from 8,277 bales yesterday.
Chart Trends: Trends in Cotton are mixed to up with objectives of 109.00 and 125.90 December. Support is at 94.80, 92.10, and 88.80 December, with resistance of 98.50, 100.80 and 103.20 December.

COT — Supplemental Report – Option and Futures Combined Positions as of July 26, 2022
: Reportable Positions : Nonreportable
:—————————————————————————————- : Positions
: Non-Commercial : Commercial : Index Traders : Total
: Long : Short :Spreading: Long : Short : Long : Short : Long : Short : Long : Short
——————————————————————————————————————-
COTTON NO. 2 – ICE FUTURES U.S.
CFTC Code #033661 Open Interest is 260,143
: Positions :
: 36,583 26,480 69,423 62,048 143,678 78,810 9,288 246,864 248,869: 13,279 11,275
: Changes from: July 19, 2022 (Change in open interest: 9,371) :
: 257 797 2,299 5,456 5,005 906 189 8,918 8,289: 453 1,081
: Percent of Open Interest Represented by Each Category of Trader :
: 14.1 10.2 26.7 23.9 55.2 30.3 3.6 94.9 95.7: 5.1 4.3
: Total Traders: 274 Number of Traders in Each Category :
: 93 63 96 52 60 46 19 228 206:
——————————————————————————————————————-

FCOJ
General Comments: FCOJ was higher last week and trends are up on the daily and weekly charts. A price recovery has started as the harvest winds down. The recent market weakness has been dramatic since the market made new contract highs earlier this month. The weather remains generally good for production around the world for the next crop. Brazil has some rain and conditions are rated good. Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are up with no objectives. Support is at 168.00, 165.00, and 162.00 September, with resistance at 175.00, 179.00, and 181.00 September.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of July 26, 2022
: Reportable Positions :
:————————————————————————————————————- :
: Producer/Merchant : : : :
: Processor/User : Swap Dealers : Managed Money : Other Reportables :
: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading :
—————————————————————————————————————-
FRZN CONCENTRATED ORANGE JUICE – ICE FUTURES U.S. (CONTRACTS OF 15,000 POUNDS) :
CFTC Code #040701 Open Interest is 12,511 :
: Positions :
: 2,849 9,072 2,634 85 9 2,473 551 216 1,066 232 1,413 :
: Changes from: July 19, 2022 :
: 358 -96 0 9 7 -461 56 135 4 -65 44 :
: Percent of Open Interest Represented by Each Category of Trader :
: 22.8 72.5 21.1 0.7 0.1 19.8 4.4 1.7 8.5 1.9 11.3 :
: Number of Traders in Each Category Total Traders: 64 :
: 15 12 6 . . 16 . 5 11 6 6 :
—————————————————————————————————————-

COFFEE
General Comments: New York and London were higher last week on renewed fund and other speculator buying interest. Some speculative long liquidation was noted late in the week before the end of the month. Trends are mixed on the daily charts in both markets. Certified stocks keep dropping but GCA stocks are holding strong. Demand for Coffee overall is thought to be less but the cash market remains strong. There is less Coffee on offer from origin, with Brazil offering less and Central America and Vietnam offering less as well. The weather in Brazil is good for Coffee production and any harvest activities. Temperatures are above normal in Brazil and conditions are mostly dry. The dry weather is raising some concerns about the next crop potential but it is normally dry at this time of year.
Overnight News: ICE certified stocks are unchanged today at 0.700 million bags. The ICO daily average price is now 192.36 ct/lb. Brazil will get mostly dry conditions with above normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers.
Chart Trends: Trends in New York are mixed to up with objectives of 237.00 and 248.00 September. Support is at 212.00, 210.00, and 203.00 September, and resistance is at 226.00, 228.00 and 231.00 September. Trends in London are mixed to up with objectives of 2050, 2110, and 2900 September. Support is at 3010, 1980, and 1940 September, and resistance is at 2060, 2090, and 2110 September.

COT — Supplemental Report – Option and Futures Combined Positions as of July 26, 2022
: Reportable Positions : Nonreportable
:—————————————————————————————- : Positions
: Non-Commercial : Commercial : Index Traders : Total
: Long : Short :Spreading: Long : Short : Long : Short : Long : Short : Long : Short
——————————————————————————————————————-
COFFEE C – ICE FUTURES U.S.
CFTC Code #083731 Open Interest is 250,731
: Positions :
: 26,906 12,213 73,155 92,229 143,893 50,087 13,403 242,377 242,664: 8,354 8,068
: Changes from: July 19, 2022 (Change in open interest: 1,422) :
: -593 -1,762 821 143 1,698 1,005 865 1,376 1,623: 46 -201
: Percent of Open Interest Represented by Each Category of Trader :
: 10.7 4.9 29.2 36.8 57.4 20.0 5.3 96.7 96.8: 3.3 3.2
: Total Traders: 370 Number of Traders in Each Category :
: 101 78 114 115 116 48 23 320 286:
——————————————————————————————————————-

DJ ICE Commitments: ICE Europe Robusta Coffee Futures/Options
Commitments of Traders-Options and Futures
Combined Positions as of 07/26/2022
Reportable Positions
===============================================================================
Producer/Merchant/ Swap Dealers
Processor/User
OI Long Short Long Short Spreading
===============================================================================
ICE Futures Europe
118,391 71,209 67,819 2,680 9,630 2,272
Percent of Open Interest Represented by each Category of Trader
100% 60.1% 57.3% 2.3% 8.1% 1.9%
Number of Traders in Each Category
139 40 39 7 8 9
Reportable Positions
===============================================================================
Managed Money Other Reportables
Long Short Spreading Long Short Spreading
===============================================================================
12,281 12,766 4,657 6,488 2,735 13,985
Percent of Open Interest Represented by Each Category of Trader
10.4% 10.8% 3.9% 5.5% 2.3% 11.8%
Number of Traders in Each Category
24 26 16 10 11 21
Nonreportable Positions
=======================
Long Short
=======================
4,819 4,527
Percent of Open Interest Represented by Each Category of Trader
4.1% 3.8%

SUGAR
General Comments: New York and London closed a little lower last week on what appeared to be speculative selling based on production data from Unica in Brazil. Unica estimated the Sugar production at about 2.97 million tons, above trade estimates near 2.84 million. Sugarcane crushed totaled 46.34 million tons. The selling in these markets has been relentless for the last week to 10 days. The New York market is worried that the lack of clarity about ethanol demand in Brazil will force mills down there to produce more Sugar for export. The London market had been looking for increased supplies from origin and now is more worried about demand after recent price strength. Trends are down in New York and in London. Brazil is reported to have a big crop of Sugarcane coming and as it is harvesting its crop of Sugarcane and turning much of it into Ethanol but is still making some Sugar and some of that Sugar is making it into export channels. The production mix could change in the short term to include more Sugar. Reports from India indicated that conditions are generally good for Sugar production. Monsoon rains have been good in India this year.
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.
Chart Trends: Trends in New York are down with objectives of 1720 and 1660 October. Support is at 1710, 1680, and 1650 October and resistance is at 1770, 1820, and 1850 October. Trends in London are mixed to down with no objectives. Support is at 508.00, 501.00, and 493.00 October and resistance is at 519.00, 526.00, and 537.00 October.

COT — Supplemental Report – Option and Futures Combined Positions as of July 26, 2022
: Reportable Positions : Nonreportable
:—————————————————————————————- : Positions
: Non-Commercial : Commercial : Index Traders : Total
: Long : Short :Spreading: Long : Short : Long : Short : Long : Short : Long : Short
——————————————————————————————————————-
SUGAR NO. 11 – ICE FUTURES U.S.
CFTC Code #080732 Open Interest is 886,650
: Positions :
: 69,084 112,635 202,788 305,409 458,681 240,400 46,020 817,681 820,124: 68,969 66,526
: Changes from: July 19, 2022 (Change in open interest: 46,457) :
: -20,357 48,181 33,380 38,101 -49,884 -3,442 3,346 47,682 35,024: -1,226 11,433
: Percent of Open Interest Represented by Each Category of Trader :
: 7.8 12.7 22.9 34.4 51.7 27.1 5.2 92.2 92.5: 7.8 7.5
: Total Traders: 259 Number of Traders in Each Category :
: 63 70 79 70 71 39 17 216 197:
——————————————————————————————————————-

DJ ICE Commitments: ICE Europe White Sugar Futures/Options
Commitments of Traders-Options and Futures
Combined Positions as of 07/26/2022
Reportable Positions
===============================================================================
Producer/Merchant/ Swap Dealers
Processor/User
OI Long Short Long Short Spreading
===============================================================================
ICE Futures Europe
77,222 28,540 62,246 7,458 2,817 2,541
Percent of Open Interest Represented by each Category of Trader
100% 37.0% 80.6% 9.7% 3.6% 3.3%
Number of Traders in Each Category
106 31 33 6 4 5
Reportable Positions
===============================================================================
Managed Money Other Reportables
Long Short Spreading Long Short Spreading
===============================================================================
25,235 2,116 3,400 3,420 718 567
Percent of Open Interest Represented by Each Category of Trader
32.7% 2.7% 4.4% 4.4% 0.9% 0.7%
Number of Traders in Each Category
33 6 15 8 3 5
Nonreportable Positions
=======================
Long Short
=======================
6,061 2,817
Percent of Open Interest Represented by Each Category of Trader
7.8% 3.6%

COCOA
General Comments: New York and London were a little lower last week. Supplies of Cocoa are as large as they will be now for the rest of the marketing year but the market is trying to hold the recent lows. Trends are turning up in both markets. Reports of sun and dry weather along with very good soil moisture from showers keep big production ideas alive in Ivory Coast. Ideas are still that good production is expected from West Africa for the year. The weather is good for harvest activities in West Africa but the harvest should be winding down now. Current reports from Ivory Coast indicate that the weather is a good mix of sun and rain. The weather is good in Southeast Asia. Ivory Coast arrivals are now estimated at 2.013 million tons for the current marketing year, down 4.1% from the previous year.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near normal temperatures. ICE certified stocks are higher today at 5.537 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2290, 2240, and 2200 September, with resistance at 2380, 2410, and 2420 September. Trends in London are mixed. Support is at 1690, 1680, and 1650 September, with resistance at 1740, 1770, and 1780 September.

COT — Supplemental Report – Option and Futures Combined Positions as of July 26, 2022
: Reportable Positions : Nonreportable
:—————————————————————————————- : Positions
: Non-Commercial : Commercial : Index Traders : Total
: Long : Short :Spreading: Long : Short : Long : Short : Long : Short : Long : Short
——————————————————————————————————————-
COCOA – ICE FUTURES U.S.
CFTC Code #073732 Open Interest is 374,733
: Positions :
: 58,161 75,520 100,365 141,680 149,923 59,875 36,331 360,082 362,140: 14,652 12,593
: Changes from: July 19, 2022 (Change in open interest: 6,283) :
: 1,848 -3,963 5,502 -1,255 5,075 -655 -1,159 5,441 5,456: 842 827
: Percent of Open Interest Represented by Each Category of Trader :
: 15.5 20.2 26.8 37.8 40.0 16.0 9.7 96.1 96.6: 3.9 3.4
: Total Traders: 261 Number of Traders in Each Category :
: 79 79 82 52 38 31 23 209 185:
——————————————————————————————————————-

DJ ICE Commitments: ICE Europe Cocoa Futures/Options
Commitments of Traders-Options and Futures
Combined Positions as of 07/26/2022
Reportable Positions
===============================================================================
Producer/Merchant/ Swap Dealers
Processor/User
OI Long Short Long Short Spreading
===============================================================================
ICE Futures Europe
303,877 184,473 183,203 31,834 33,461 20,108
Percent of Open Interest Represented by each Category of Trader
100% 60.7% 60.3% 10.5% 11.0% 6.6%
Number of Traders in Each Category
144 54 42 12 9 11
Reportable Positions
===============================================================================
Managed Money Other Reportables
Long Short Spreading Long Short Spreading
===============================================================================
18,486 25,027 10,817 10,374 2,463 26,434
Percent of Open Interest Represented by Each Category of Trader
6.1% 8.2% 3.6% 3.4% 0.8% 8.7%
Number of Traders in Each Category
18 24 17 11 10 20
Nonreportable Positions
=======================
Long Short
=======================
1,351 2,364
Percent of Open Interest Represented by Each Category of Trader
0.4% 0.8%

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