Softs Report - Wednesday, Jan. 28

COTTONGeneral Comments: Cotton was higher yesterday after moving sharply lower the day before. Trends started to turn down on the daily reports. There are demand concerns moving forward on weak world economy ideas led by the US weakened economy and demands in world forums. World leaders met in Davos for the economic forum and the market is waiting for results from the meetings as well as new comments from President Trump about his proposals to take over Greenland against everyone else wishes. Trump has walked back those comments and the crisis has been less for now. 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. Support is at 62.40, 61.80, and 61.20 March, with resistance of 64.20, 64.90 and 65.20 March.DepositPhotosFCOJGeneral Comments: Futures were little changed in March as speculator and the liquidate positions before First Notice Day at the beginning of the month, but higher yesterday as the Florida harvest is active end the weather remain benign. Chart trends are mixed. There is no freeze in the forecast, but areas north of the state have been very cold and more cold weather is possible this weekend. 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.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 and London closed higher yesterday, and trends turned up in New York and remain up in London. There are still ideas and reports of increasing harvest sales from Vietnam as the new harvest epands. 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 new crop Coffee.Overnight News: The ICO average price is 294.32 ct/lb.Chart Trends: Trends in New York are up. Support is at 350.00, 345.00, and 339.00 March, and resistance is at 372.00, 383.00 and 390.00 March. Trends in London are up. Support is at 4070, 3980, and 3920 March, with resistance at 4370, 4440, and 4520 .SUGARGeneral Comments: New York closed higher and London was 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 especially for Whitwe Sugar while global consumption is expected to remain steady.Chart Trends: Trends in New York are mixed. Support is at 1440, 1410, and 1380 March and resistance is at 1510, 1540, and 1560 March. Trends in London are down. Support is at 410.00, 404.00, and 398.00 March, with resistance at 427.00, 432.00, and 437.00 March.COCOAGeneral Comments: New York and London closed higher yesterday. Short term trends are mixed to down. 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.Chart Trends: Trends in New York are mixed to down. Support is at 4060, 3840, and 3720 March, with resistance at 4490, 4970, and 5180 March. Trends in London are mixed to down. Support is at 2980, 2860, and 2740 March, with resistance at 3660, 3780, and 4030 March.More By This Author:Grains Report - Tuesday, Jan. 27Softs Report - Monday, Jan.26Grains Report - Friday, Jan. 23