Softs Report 12/10/2024

COTTON
General Comments: Cotton was a little lower yesterday in anticipation of bad demand ideas from USDA later today in its monthly WASDE report. There should not be a production update released today. The trends are still turning down. There was not much in the way of news or action in outside markets to spur Cotton in one direction or the other. Selling came from news that Trump will impose some big tariffs on China, but the tariffs posted were not as high as he had threatened before during the campaign. China has big problems with its domestic economy with consumer buying interest not strong and many people not working. There are still reports of weaker demand potential against an outlook for improved but still rather low US production in the coming year.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 69.70, 69.40, and 68.40 March, with resistance of 72.70, 73.50 and 74.70 March.

FCOJ
General Comments: FCOJ closed lower yesterday and the chart trends are mixed to down. The short term supply scenario remains very tight. The market remains well supported in the longer term based on forecasts for tight supplies in Florida. The reduced production appears to be mostly at the expense of the greening disease and some extreme weather seen in the last couple of years. There are no weather concerns to speak of for Brazil or Florida right now.
Overnight News:
Chart Trends: Trends in FCOJ are mixed to down. Support is at 484.00, 480.00, and 470.00 January, with resistance at 506.00, 516.00, and 533.00 January

COFFEE
General Comments: New York was mixed and London closed higher again yesterday. Commercials bought and were leaving short hedges. Reports of reduced offers from Brazil on weather induced short crops continue and there are also reports of too much rain in parts of Central America damaging crops there. There are reports from Brazil that producers have already sold a lot of Coffee and are holding back on selling more even with good demand. Offers from Vietnam are increasing now as the harvest has been expanding. The chart trends are still up in both markets. There are reports for good rains in Brazil as the rainy season is now under way after very dry conditions.
Overnight News: The ICO average price is 309.43 ct/lb.
Chart Trends: Trends in New York are up. Support is at 314.00, 301.00, and 290.00 March, and resistance is at 336.00, 340.00 and 346.00 March. Trends in London are up. Support is at 4910, 4770, and 4540 January, with resistance at 5350, 5400, and 5460 January.

SUGAR
General Comments: New York and London closed lower yesterday after trading higher last week. Both markets remain in ranges with a slight downside bias. The current Brazil rains have kept the harvest and crushing pace down but could provide a boost to production for next year. Trends are mixed in both markets on the daily charts and mixed on the weekly charts. Indian and Thai mills are expecting strong crops of cane. It is also wet in Brazil, and this has affected harvest progress. Supplies available to the market could be less in the next six months due to adverse growing conditions seen in Brazil during the production period. Total Brazil production has been affected by drought seen earlier in the year and the fires that destroyed crops in some areas.
Overnight News:
Chart Trends: Trends in New York are mixed to down. Support is at 2080, 2020, and 1980 March and resistance is at 2200, 2240, and 2250 March. Trends in London are mixed to down. Support is at 540.00, 536.00, and 529.00 March, with resistance at 568.00, 581.00, and 592.00 March.

COCOA
General Comments: New York and London closed higher yesterday as the weather induced buying continued. There is talk that production will be short of demand for the fourth year in a row. Chart trends are up in both markets on the daily charts. Producers in Ghana and in Ivory Coast have been fighting against too much rain that has made it hard to harvest and deliver crops. It has been very wet in West Africa lately and this is bringing concerns that pod disease could develop.
Overnight News:
Chart Trends: Trends in New York are up. Support is at 9810, 9450, and 9200 March, with resistance at 10460, 10580, and 10700 March. Trends in London are up. Support is at 7590, 7630, and 7390 March, with resistance at 8340, 8400, and 8520 March.

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