Softs Report 07/08/2024

COTTON
General Comments: Cotton was lower after the July 4th holiday on forecasts for Hurricane Beryl to move intzo the Mexican coast and only bring beneficial rains to important growing areas of Texzs in zthe next week. USDA showed a decrease in production conditions for the crops in its reports this week that were the result of some extreme weather seen recently in Texas and the Southeast. The Delta should have the best looking crops right now. 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: ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 132 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 70.00, 68.80, and 67.60 December, with resistance of 75.80, 77.70 and 79.40 December.

FCOJ
General Comments: FCOJ closed higher after the US holiday and trends are up again. 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: ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 144 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 422.00, 410.00, and 403.00 September, with resistance at 441.00, 457.00, and 459.00 September.

COFFEE
General Comments: New York and London closed higher as more reports of short supplies that could be made worse by ideas of reduced offers of Robusta are still in the market. The weather forecasters now say that conditions are good in Vietnam, but damage was done to crops earlier in the growing season. A little rain has been reported in Vietnam recently to help crops there. There were also reports of poor Robusta yields in Brazil during the harvest due to small bean sizes.
Overnight News: The ICO daily average price is now 230.76 ct/lb. ICE NY said that 25 contracts were posted for delivery against July contracts and that total deliveries for the month are now 661 contracts.
Chart Trends: Trends in New York are mixed. Support is at 217.00, 212.00, and 203.00 September, and resistance is at 236.00, 238.00 and 240.00 September. Trends in London are mixed. Support is at 3960, 3820, and 3740 July, with resistance at 4300, 4390, and 4450 September.

SUGAR
General Comments: New York and London closed mostly lower in light volume trading after the July 4th holiday as harvest progress in Brazil was the important fundamental but as world supplies remain rather tight. Harvest yields of Sugarcane in Brazil have been disappointing so far. Trends are mixed to up on the daily and weekly charts. There are still ideas that the Brazil harvest can be strong for the next few weeks amid dry harvest weather. Harvest weather is called good in center-south Brazil.
Overnight News:
Chart Trends: Trends in New York are up with objectives of 2070 and 2170 October. Support is at 1970, 1920, and 1880 October and resistance is at 2090, 2140, and 2170 October. Trends in London are up with objectives of 575.00 and 600.00 October. Support is at 550.00, 550.00, and 528.00 October, with resistance at 581.00, 590.00, and 599.00 October.

COCOA
General Comments: New York and London both closed a little lower last week and chart trends are down. Production concerns in West Africa as well as demand from nontraditional sources along with traditional buyers keep supporting futures, but this support is running its course and the market is searching for a new bullish fundamental. 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.
Overnight News: ICE NY said that 638 notices were posted for delivery against July futures and that total deliveries for the month are now 1,668 contracts.
Chart Trends: Trends in New York are down with no objectives. Support is at 6960, 6420, and 6w000 September, with resistance at 8000, 8130, and 8670 September. Trends in London are mixed. Support is at 5790, 5350, and 4920 September, with resistance at 6810, 7420, and 7940 September.

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