Softs Report 08/26/2025

COTTON
General Comments: Cotton was lower yesterday after a late week last week rally that was caused by the Powell speech in Jackson Hole. He noted increasing chances for interest rate cuts due to weaker jobs data that could restrain inflation. The stock market rallied and the US Dollar was lower but the Dollar was higher yesterday. Better weather is expected for the Delta and Southeast for the coming week as crop condition reports were mostly unchanged. There are still reports of hotter and drier weather in West Texas. There are still ideas that growing conditions are generally good. There are still reports of better weather in Texas and into the Southeast and demand concerns caused by the tariff wars are still around. It is starting to turn dry in west Texas again, however. The monsoon in India is good and a good production there is possible.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 65.90, 64.30, and 63.00 December, with resistance of 68.50, 69.90 and 69.50 December.

This Week Last Week Last Year Average
Cotton Setting Bolls 81 73 88 87
Cotton Bolls Opening 20 13 24 22
Very Poor Poor Fair Good Excellent
Cotton This Week 3 10 33 43 11
Cotton Last Week 4 10 31 43 12
Cotton Last Year 12 16 32 34 6

FCOJ
General Comments: Futures were higher yesterday. Trends are mixed to up on the daily charts. Trends are mixed on the weekly charts. Selling was seen in response to news that President Trump had decided to remove OJ from the punishing tariffs on Brazil it announced earlier in the year. So, the actions by the president have created major highs and lows in the market. Development conditions are good in Florida now with daily rounds of showers. The poor production potential for the crops comes from early dry weather but also the greening disease that has caused many Florida and closed near the lows of the week producers to lose trees.
Overnight News:
Chart Trends: Trends in FCOJ are mixed to up. Support is at 223.00, 216.00, and 207.00 September, with resistance at 257.00, 272.00, and 283.00 September.

COFFEE
General Comments: New York was lower yesterday and London was closed. It looked like long liquidation in New York. There are still reduced deliverable supplies for the New York exchange. Robusta is still more available to the market and with Brazil holding back on offers to world destinations. The lack of deliverable stocks and the lack of deliveries has supported the futures market. Prices had been dropping for several weeks and are much more moderate than before as supplies available to the market have ticked up. The Brazil harvest is moving along, and Indonesia about over. Vietnam is done with its harvest. A cold snap earlier this month will reduce the size of the next coffee crop in Brazil’s Cerrado Mineiro growing region by around 412,000 60-kg bags, or 5.5%, Expocacer said.
Overnight News: The ICO average price is 336.15 ct/lb. ICE NY said that 326 contracts were delivered against September futures and that total deliveries for the month are now 767 contracts.
Chart Trends: Trends in New York are up. Support is at 367.00, 343.00, and 337.00 December, and resistance is at 399.00, 405.00 and 412.00 December. Trends in London are up. Support is at 4450, 4300, and 4210 November, with resistance at 4810, 4930, and 5050 November.

SUGAR
General Comments: New York was a little lower yesterday as London was closed. The Brazil production could be less, in part due to a recent freeze event and in part to reports of less sucrose in the cane. There were ideas of less European production this year that could rally prices later in the year but have drawn no interest so far from speculators. Ideas of good supplies for the market from good growing conditions for cane and beets around the world continue. The South Center Brazil harvest is faster now amid drier conditions. Production in Center-South Brazil has also been strong. Good growing conditions are reported in India and Thailand after a fast start to the Monsoon season.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 1600, 1540, and 1500 October and resistance is at 1700, 1730, and 1750 October. Trends in London are mixed. Support is at 473.00, 466.00, and 460.00 October, with resistance at 500.00, 506.00, and 517.00 October.

COCOA
General Comments: New York was higher yesterday as reports of increased selling pressure from producers abated and weather concerns in West Africa took center stage. There are still reports of increased production potential in other countries outside of West Africa, including Asia and Central America, but Africa has turned dry and producers there are concerned about potential losses now. The market anticipates less demand and less production from Ivory Coast and Ghana.
Overnight News: ICE NY said that there were 338 notices were posted for delivery against September futures and that total deliveries for the month are now 362 contracts.
Chart Trends: Trends in New York are mixed. Support is at 7480, 7320, and 7150 December, with resistance at 8140, 8500, and 8820
December. Trends in London are mixed to down. Support is at 5260, 5200, and 5150 December, with resistance at 5500, 5650, and 5700 September.

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