Softs Report - Thursday, Jan. 15

DepositPhotosCOTTONGeneral Comments: Cotton was slightly lower yesterday in quiet trading and a lack of news. The USDA reports showed less production and unchanged demand. Ending stocks were less. The market expected production near 14.20 million bales and ending stocks near 4.56 million bales. World production is estimated at 119.46 million bales and ending stocks are estimated at 75.62 million bales. Farmers are not selling too much due to price, but buyers are hard to find. The lack of demand seems to be part of the price for now.Chart Trends: Trends in Cotton are mixed. Support is at 63.70, 63.00, and 62.40 March, with resistance of 65.90, 66.40 and 67.20 March.FCOJGeneral Comments: Futures were lower yesterday as the Florida harvest is active. USDA showed US production at 54.8 million boxes and Florida production at 12.0 million boxes. Both estimates are unchanged from previous reports. Chart trends are mixed. There is no freeze in the forecast, but areas north of the state have been very cold. Florida has also been dry and irrigation is needed. 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: ICE said that 0 notices were posted for delivery against January futures and that total deliveries for the month are now 0 contracts.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.COFFEEGeneral Comments: New York was lower and London was mixed yesterday, and trends are mixed in both markets. There are still ideas and reports of increasing harvest sales from Vietnam. There are reports of very good conditions in Brazil. Most farmers are holding for better prices. 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.Overnight News: The ICO average price is 296.14 ct/lb.Chart Trends: Trends in New York are mixed. Support is at 353.00, 345.00, and 339.00 March, and resistance is at 385.00, 390.00 and 400.00 March. Trends in London are mixed to up. Support is at 3860, 3730, and 3670 March, with resistance at 4070, 4100, and 4190 .SUGARGeneral Comments: New York and London were lower yesterday. 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 while global consumption is expected to remain steady.Chart Trends: Trends in New York are mixed. Support is at 1450, 1440, and 1410 March and resistance is at 1510, 1540, and 1560 March. Trends in London are mixed. Support is at 415.00, 410.00, and 404.00 March, with resistance at 431.00, 437.00, and 445.00 March.COCOAGeneral Comments: New York and London closed lower again. Short term trends are down. A big main crop harvest is anticipated in West Africa and rains have been positive for crops lately. Light rains mixed with heat in Ivory Coast’s cocoa-growing regions last week signaled a positive outlook for the main 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 and the lack of demand is expected to continue. Cocoa bean arrivals at ports in Ivory Coast fell 3.4% between Oct 1 and January 4 versus the same period last season. This might be partly down to unusual rain in December.Chart Trends: Trends in New York are mixed. Support is at 4930, 4870, and 4810 March, with resistance at 5490, 5790, and 6230 March. Trends in London are mixed. Support is at 3650, 3530, and 3410 March, with resistance at 4030, 4200, and 4290 March.More By This Author:Grains Report - Tuesday, Jan. 13Softs Report - Thursday, Jan. 8Grains Report - Tuesday, Jan. 6