Softs Report 06/18/2024

COTTON
General Comments: Cotton was lower yesterday as growing conditions are good and demand is not. Big storms were reported in Texas recently that could damage crops. There are also some big problems with too much rain in the Delta and Southeast in recent weeks. Demand has been weaker so far this year but there are hopes for improved demand with the lower prices. Chinese consumer demand has held together well, and Chinese demand for Cotton has started to increase.
Overnight News:
Chart Trends: Trends in Cotton are down with no objectives. Support is at 68.00, 66.80, and 6e 67.60 July, with resistance of 71.50, 73.70 and 76.00 July.

This Week Last Qeek Last Year Average
Cotton Planted 90 80 87 91
Cotton Squaring 22 14 17 18
Cotton Setting Bolls 6 2 3
Very Poor Poor Fair Good Excellent
Cotton This Week 2 11 33 47 7
Cotton Last Week 2 6 36 49 7
Cotton Last Year 7 13 33 41 6

FCOJ
General Comments: FCOJ closed higher on follow through buying yesterdazy. The daily charts show that the market is trying to form a bottom but the work is not done yet. The market remains well supported in the longer term based on forecasts for tight supplies and very hot weather in Florida. The reduced production appears to be at the expense of the greening disease. There are no weather concerns to speak of for Florida or for Brazil right now. The weather has improved in Brazil with some moderation in temperatures and increased rainfall amid reports of short supplies in Florida and Brazil are around but will start to disappear as the weather improves and the new crop gets harvested.
Overnight News:
Chart Trends: Trends in FCOJ are down with objectives of 403.00 and 370.00 July. Support is at 417.00, 406.00, and 389.00 July, with resistance at 452.00, 473.00, and 477.00 July.

COFFEE
General Comments: Both markets closed closed higher yesterday on short supplies that could be made worse by ideas of reduced offers of Robusta and on forecasts for another couple of weeks of dry weather in Vietnam. There were also reports of poor Robusta yields in Brazil during the harvest. Ideas of less production in Vietnam are driving the rally. There were indications that Brazil and Vietnam producers were now offering Coffee, buts in small amounts,
Overnight News: The ICO daily average price is now 226.32 ct/lb. Brazil will get mostly scattered showers with near normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers.
Chart Trends: Trends in New York are mixed. Support is at 218.00, 212.00, and 208.00 July, and resistance is at 229.00, 239.00 and 241.00 July. Trends in London are up with no objectives. Support is at 4090, 4060, and 3990 July, with resistance at 4200, 4\540, and 4660 July.

SUGAR
General Comments: Both markets closed lower yesterday on harvest progress in Brazil and on new tax proposals that the government of Brazil is considering. The Brazil government wants to tax ag products at 29% and this has caused an uproar in some markets.. Trends are mixed on the daily charts. End users need Sugar but are not finding too much available in the cash market. There are still ideas that the Brazil harvest can be strong for the next few weeks amid dry harvest weather, but now the cry weather is causing concern about developing Sugarcane in center south areas. Harvest weather is called good in center-south Brazil. There are worries about the Thai and Indian production, but data shows better than expected production from both countries.
Overnight News: Brazil will get rains in the south and scattered showers in the north. Temperatures should average above normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are mixed. Support is at 1890, 1860, and 1840 July and resistance is at 2000, 2050, and 2100 July. Trends in London are mixed. Support is at 536.00, 528.00, and 522.00 August, with resistance at 570.00, 578.00, and 586.00 August.

COCOA
General Comments: Both markets were lower yesterday, and chart trends are mixed. Production concerns in West Africa as well as demand from nontraditional sources along with traditional buyers keep supporting futures. Production in West Africa could be reduced this year due to the extreme weather which included Harmattan conditions. The availability of Cocoa from West Africa remains very restricted and projections for another production deficit against demand for the coming year are increasing. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana continue.
Overnight News:
Chart Trends: Trends in New York are mixed Support is at 9410, 8930, and 7870 July, with resistance at 10310, 10520, and 11000 May. Trends in London are mixed. Support is at 9100, 7640, and 7250 July, with resistance at 9150, 9640, and 9980 July.

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