Softs Report 05/20/2026

COTTON
General Comments: Cotton was lower yesterday on doubts about reports of a new agricultural deal with China. The White House announced that China had agreed zto purchase up to 17 billion dollars of US Ag goods in addition to Soybeans. China has not commented on the reports. USDA showed that planting progress was runnung ahead of normal.Forecasts and reports of just isolated to scattered showers in western Cotton areas continue. Conditions remain dry in major Texas growing areas but scattered to isolated showers are still forecast and also forecast for most Delta and Southeast Cotton growing areas. Temperatures will be variable. Trends are up on the daily and weekly charts.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 81.90, 80.20, and 78.90 July, with resistance of 84.20, 89.00 and 89.60 July.

FCOJ
General Comments: Futures were lower yesterday but it is still dry in Florida. The weather for the next crop is dry but seasonal and some rains are now being reported. Chart trends are mixed on the daily charts. The weather is considered good for production Mexico but it is dry in Brazil. Scattered showers are still reported in eastern Brazil.
Overnight News: ICE said that 28 notices were posted for delivery against May futures and that total deliveries for the month are now 28 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 180.00, 173.00, and 161.00 July, with resistance at 193,00 200.00, and 206.00 July.

COFFEE
General Comments: New York and London were higher yesterday. The next crop is developing in South America and Asia. There are still ideas of good supplies available. World production conditions are generally good. Mostly dry conditions are being reported now in Brazil. Mexico is in good condition, as Central America. Vietnam has had drier weather and conditions there are called good. Some showers are starting to appear there.
Overnight News: The ICO average price is 248.69 ct/lb.
Chart Trends: Trends in New York are down. Support is at 265.00, 260.00, and 254.00 July, and resistance is at 286.00, 397.00 and 306.00 July. Trends in London are mixed. Support is at 3250, 3180, and 3120 July, with resistance at 3610, 3650, and 3680 July.

SUGAR
General Comments: Both markets were higher yesterday. The Iran war drags on and the strait of Hormuz remains closed. President Trump has paused Operation Freedom to allow negotiations on a peace deal to be concluded but rejected an offer from Iran over the weekend. The war has increased world petroleum prices and could divert demand from Sugar production to production of ethanol. Trends are up on the daily charts in both markets. There are good supplies for the market from good growing conditions for cane and beets around the world. Drier weather in parts of Brazil and India have been good for the harvest.
Overnight News:
Chart Trends: Trends in New York are mixed to up. Support is at 1440, 1400, and 1370 July and resistance is 1550, 1570, and 1600 July. Trends in London are mixed. Support is at 433.00, 404.00, and 398.00 August, with resistance at 457.00, 468.00, and 474.00 August.

COCOA
General Comments: Both markets were higher again yesterday. Daily and weekly trends are up in both markets. A big main crop harvest has arrived in West Africa and rains have been positive for the next crop. 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 due to the high prices seen last year 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.
Overnight News: ICE NY said that 0 notices were posted for delivery against May futures and that total deliveries for the month are now 628 contracts
Chart Trends: Trends in New York are mixed. Support is at 3720, 3700, and 3490 July, with resistance at 4160, 4460, and 4780 July. Trends in London are mixed to up. Support is at 2820, 2710, and 2500 July, with resistance at 3100, 3350, and 3550 July.

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