Cotton, Sugar and Cocoa Futures

Forex 2020

Junior member
31 0
Cotton :The hope that consumer demand for Cotton products will quickly return is not likely to be confirmed. Consumers have really been hurt economically due to stay at home orders imposed here and overseas and it will take some time for them to recover. As an example, Chinese stores have been open for several weeks but there has been no consumer rush to go to them and buy. The same is possible here and in Europe although the data so far is mixed in this regard. It is too dry in Brazil for good growth of the second crop of Cotton.The Delta will get periods of scattered showers through Thursday and isolated showers through Saturday and Southeast will get scattered showers. Temperatures should be mostly below normal. Texas will have dry conditions or isolated showers. Temperatures will average near normal. The USDA average price is now 53.80 ct/lb. ICE said that certified stocks are now 6,732 bales, from 6,693 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 57.60, 57.10, and 56.80 July, with resistance of 59.80, 60.50 and 61.00 July.

OUR POSITION: Short position from 63.38 was closed at 53.90. We are Flat

Sugar : New York and London closed higher. Crude Oil and products prices were higher as well and helped ethanol demand ideas. The recently weaker petroleum futures had made more Sugarcane available for processing into Sugar in Brazil. The Brazil mills are trying to cover the lack of White Sugar in the market. Reports indicate that little is on offer from India in part due to logistical and harvest problems caused by the Coronavirus. Thailand might also have less this year due to reduced planted area and erratic rains during the monsoon season. There are reduced flows from rivers from China as well.Brazil will get a dry week. Temperatures should average near to below normal.
Chart Trends: Trends in New York are mixed. Support is at 10.70, 10.40, and 10.20 October, and resistance is at 11.30, 11.60, and 11.80 October. Trends in London are mixed to up with objectives of 408.00 August. Support is at 370.00, 364.00, and 360.00 August, and resistance is at 387.00, 399.00, and 404.00 August.

OUR POSITION: Short position from 13.60 was closed at 10.30. We are Flat

Cocoa: New York and London closed lower on follow through selling. Futures are still in trading ranges The virus has complicated farming and marketing efforts. Ideas are that deliveries can be slower on any contracted Cocoa and that the next crop could suffer as workers stay away. The Coronavirus helps keep demand away and helps keep workers from grinding facilities and chocolate manufacturers. Harvest is now over for the main crop in West Africa and the results so far are very good. Ideas are that demand is less than before due to the Coronavirus problems in Europe. The reports from West Africa imply that a big harvest in the region.
Isolated to scattered showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near to above normal temperatures. ICE certified stocks are lower today at 4.287 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2380, 2340, and 2310 July, with resistance at 2460, 2470, and 2490 July. Trends in London are mixed. Support is at 1930, 1910, and 1890 July, with resistance at 1990, 2000, and 2030 July.

OUR POSITION: Short position from 2,616 was closed at 2,304. We are Flat
 
 
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