Softs Report 06/20/2024

COTTON
General Comments: Cotton was higher yesterday in recovery trading but 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 72.00, 73.70 and 76.00 July.

FCOJ
General Comments: FCOJ closed lower in range trading yesterday. 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 406.00, 389.00, and 384.00 July, with resistance at 452.00, 473.00, and 477.00 July.

COFFEE
General Comments: New York closed lower after trading higher early in the day and London was lower all day despite 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. Offers apparently increased a bit yesterday and the tight supply scenario has been around for a while, anyway. 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 225.70 ct/lb. ICE NY said that o contracts were posted for delivery against July contracts and that total deliveries for the month are now 0 contracts.
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 4080, 4060, and 3990 July, with resistance at 4200, 4\540, and 4660 July.

SUGAR
General Comments: Both markets closed lower yesterday after trading higher early as harvest progress in Brazil and as new tax proposals that the government of Brazil is considering became the important fundamentals. 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 1880, 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 higher yesterday in range trading, 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 8100, 7640, and 7250 July, with resistance at 9150, 9640, and 9980 July.

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