COTTON
General Comments: Futures were higher on commercial and speculative buying. Traders were buying on ideas of new demand. Ideas remain that Chinese demand could start to return this week now that the holidays have passed. Chinese economic data remains good and planted area there is forecast to be lower, so ideas are that the country will remain a big buyer in world markets. The US National Cotton Council will release its planting survey this Friday and traders will now start to think about production potential here for the coming season. The weather has been dry in some growing areas of Texas as well as in southern South America, although the latter areas are seeing more beneficial precipitation this week after a week of better rains last week. Chart trends are turning down.
Overnight News: The Delta and the Southeast will see showers today, then drier weather the rest of the week. Temperatures will average above normal. Texas will get dry weather for the next few days. Temperatures will average above normal. The USDA average spot price is now 86.72 ct/lb. ICE said that certified Cotton stocks are now 0.054 million bales, from 0.052 million yesterday. USDA said that its world market Upland Cotton price is now 80.57 ct/lb.
Chart Trends: Trends in Cotton are mixed to down with objectives of 82.00 March. Support is at 92.20, 90.50, and 89.50 March, with resistance of 95.00, 96.00, and 97.50 March.

FCOJ
General Comments: Futures closed lower on speculative selling. The main topic of conversation remains the FDA progress on imported FCOJ contamination. FDA said last Friday that 11 out of 80 loads tested will not be allowed in the country, and will release a new report today. Weather in Florida remains mostly good. This week should see mostly dry weather, and moderate temperatures. Some rain is possible in northern areas late in the week. Harvest is continuing to expand. Brazil is seeing moderate temperatures and scattered showers. USDA will release its production report for the US in February, and it is possible that production here could be adjusted down slightly. Trends are mixed. The market might be ready to correct down for a day or two now.
Overnight News: Florida weather forecasts call for mostly dry weather. Temperatures will average near normal.
Chart Trends: Trends in FCOJ are mixed. Support is at 202.00, 198.00, and 192.00 March, with resistance at 208.00, 218.00, and 221.00 March.

COFFEE
General Comments: Futures were lower as there is no consumptive buying interest. Cash market offers remain low due to the prices as sellers are not interested. Brazil coffee areas appear to be in good condition under generally good weather. Showers have been frequent and temperatures have been warm, and traders anticipate tat the country will produce at least 50 million bags, with many estimating production near 55 or so million bags. Loss reports from Central America are still around, and lower production is reported from Colombia as well after too much rain. Some showers are forecast for Brazil this week that will be beneficial for crops there. Arabica futures still have to deal with a tight supply situation for the short term, and less than expected Washed Arabica Coffee production over the coming year. Differentials in all of Latin America remain strong. Charts now show that futures could work lower.
Overnight News: Certified stocks are lower today and are about 1.528 million bags. The ICO composite price is now 184.13 ct/lb. Brazil should get showers and storms later this week. Temperatures will average near to above normal. Colombia should also get showers, but Central America and Mexico should be mostly dry. Temperatures should average near to above normal in all areas.
Chart Trends: Trends in New York are mixed to down with objectives of 207.00 and 188.00 March. Support is at 210.00, 207.00, and 203.00 March, and resistance is at 217.00, 218.00, and 220.00 March. Trends in London are mixed to down with objectives of 1770 and 1680 March. Support is at 1820, 1770, and 1720 March, and resistance is at 1855, 1900, and 1925 March. Trends in Sao Paulo are mixed to down with objectives of 282.00 and 250.00 March. Support is at 290.00, 287.00, and 284.00 March, and resistance is at 295.00, 300.00, and 307.00 March.

SUGAR
General Comments: Futures closed lower as speculators liquidated positions on ideas of plenty of supplies available to the market. Traders pointed to European economic problems as reasons to worry about demand. Futures could continue a short term correction now after the recent move higher. India returned to its traditional position as a major exporter after being a big importer the previous year, and has talked about lifting export controls due to big stocks now in the country. Supply side fundamentals for Sugar remain weak with big production reported in the northern hemisphere. There is talk of less production in Brazil again later next year due to the poor weather in the south and lower prices. Weather is getting better there now.
Overnight News: Scattered showers are expected in Brazil. Temperatures should be near normal.
Chart Trends: Trends in New York are mixed to down with objectives of 2290, 2175, and 2150 March. Support is at 2340, 2330, and 2310 March, and resistance is at 2390, 2400, and 2475 March. Trends in London are mixed to down with objectives of 626.00 March. Support is at 628.00, 623.00, and 620.00 March, and resistance is at 637.00, 645.00, and 648.00 March.

COCOA
General Comments: Futures closed near a Little higher after the Ivory Coast auction. Ideas are that increased and more constant offers from Ivory Coast would increase hedge selling at the Exchange, but the auction was for next year so actual pressure is probably not that big. Exports from West Africa have begun to drop significantly and the market found a bid on ideas that the main season harvest might be ending early and that the weather there is turning hot and dry. Traders are hearing reports of big winds in western Afria now that could hurt quality or cause cherries to drop off the trees. Charts show that the market are now in a correction after the recent big rally.
Overnight News: Mostly dry conditions are expected in West Africa. Temperatures will average near to above normal. Malaysia and Indonesia should see episodes of scattered showers. Temperatures should average near normal. ICE certified stocks are higher today at 4.250 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2190, 2175, and 2150 March, with resistance at 2250, 2280, and 2310 March. Trends in London are mixed. Support is at 1440, 1420, and 1380 March, with resistance at 1470, 1510, and 1540 March.

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