Softs Report 02/04/2026

COTTON
General Comments: Cotton was a little lower in quiet trading yesterday. Trends are down on the daily and weekly charts. There are demand concerns moving forward on weak world economy ideas led by the US weakened economy and demands in world forums. US economic data has been OK but far during the Trump presidency. Tariffs on other nations that change all the time were creating an atmosphere not conducive for new demand. The USDA reports released a couple of weeks ago showed less production and unchanged demand. Ending stocks were less.
Chart Trends: Trends in Cotton are mixed to down. Support is at 62.20, 61.80, and 61.20 March, with resistance of 64.20, 64.90 and 65.20 March.

FCOJ
General Comments: Futures were much lower yesterday as the Florida harvest is active and the weather remains benign as conditions are mostly dry. Weather for the next crop was very cold over the weekend and some damage to trees and fruit is possible, but the weather is moderating now. Chart trends are down. The cold and dry Winter weather has created ideas of some crop losses. Traders are worried about demand even with overall lower prices. The weather is considered good for production in Brazil and Mexico. Scattered showers are reported in Brazil.
Overnight News:
Chart Trends: Trends in FCOJ are mixed. Support is at 184.00, 174.00, and 168.00 March, with resistance at 226.00, 230.00, and 240.00 March.

COFFEE
General Comments: New York and London closed sharply lower yesterday, and trends turned down in New York and are turning down in London. Good weather and good production conditions are reported in just about any producing country. There are still reports of increasing harvest sales from Vietnam as the new harvest is active. There are reports of very good conditions in Brazil and a large crop is forecast. Most farmers are holding for better prices, but seem to have lost that battle for now Scattered showers are being reported now to improve tree condition in Brazil. Mexico is in good condition, as is Central America. Vietnam has scattered showers lately and conditions there are called good. Vietnamese producers are selling new crop Coffee.
Overnight News: The ICO average price is 269.00 ct/lb.
Chart Trends: Trends in New York are mixed to down. Support is at 315.00, 312.00, and 309.00 March, and resistance is at 331.00, 342.00 and 348.00 March. Trends in London are mixed to down. Support is at 3790, 3730, and 3670 March, with resistance at 3920, 4070, and 4200 .

SUGAR
General Comments: New York and London were higher yesterday and trends are still down on the daily and weekly charts. However, the tone of the market has changed and it seems that a recovery rally might have started. There are good supplies for the market from good growing conditions for cane and beets around the world continue. The prospect of a big global surplus in the 2025/26 season was keeping the market on the defensive with a rise in production in India and Thailand set to increase supplies especially for White Sugar while global consumption is expected to remain steady. Indian crops are seeing good finishing weather and production ideas have been increasing. Datagro said that Sugar production in top grower Brazil’s Centre-South region will be 40.9 million metric tons in 2026/27 from 40.77 million in 2025/26. Al Khaleej Sugar’s refinery in the United Arab Emirates, the world’s largest port-based sugar refiner, is operating at 70% capacity.
Overnight
Chart Trends: Trends in New York are down. Support is at 1410, 1380, and 1350 March and resistance is at 1510, 1540, and 1560 March. Trends in London are down. Support is at 398.00, 392.00, and 386.00 March, with resistance at 427.00, 432.00, and 437.00 March3

COCOA
General Comments: New York and London closed higher again yesterday. Short term trends are still mixed, but the market action implies aa low area is developing. A big main crop harvest is anticipated in West Africa and rains have been positive for crops lately. Mostly dry conditions in Ivory Coast’s cocoa-growing regions are reported now. There are still reports of increased production potential in other countries outside of West Africa, including Asia and Central America. The market feels that there is less demand and the lack of demand is expected to continue. Weak demand has led to a build-up on unsold supplies in both Ivory Coast and Ghana, while the prospect of another global surplus in 2026/27 are real. Cocoa demand has fallen sharply after prices nearly tripled in 2024, prompting chocolate makers to reformulate ingredients and shrink the size of their bars. Dealers noted local cocoa processors in top grower Ivory Coast are refusing to buy beans for the mid-crop, demanding price cuts. So far, no quantities for the approaching mid-crop are said to have been sold, which could cause further unrest among farmers. Ivory Coast said last week that it would officially purchase 100,000 tons of surplus cocoa because exporters were refusing to pay the government-mandated farmer price.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 3840, 3720, and 3600 March, with resistance at 4490, 4970, and 5180 March. Trends in London are mixed. Support is at 2720, 2660, and 2600 March, with resistance at 3660, 3780, and 4030 March.

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