Tuesday, December 10, 2013

Orange juice rises on demand, greening disease impact

By Jack Scoville

FCOJ (NYBOT:OJF14)

General Comments: Futures closed higher, but well off the highs as Nielsen reported increased demand. It remains very cold in parts of the U.S., but Florida remains warm. The state is being protected from the very cold temperatures to the north by a very strong jet stream that will not let the cold penetrate into the Deep South. Traders are expecting USDA to show unchanged production in its estimates this week, but to lower production even more in coming production reports. The greening disease has affected crops in a big way and could cause reduced production for the next few years. Growing and harvest conditions in the state of Florida remain mostly good. It has turned mostly dry, which is seasonal, and reports indicate that crops are in good condition. Irrigation water is available. Harvest is very active. Brazil is seeing near to above normal temperatures and scattered showers.

Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average mostly above normal. Nielsen said that US Orange Juice consumption was 41.47 million gallons for the four weeks ending on November 23, up 1.3% from the previous four week period but 7.9% less than last year.  

Chart Trends: Trends in FCOJ are up with objectives of 145.00 January. Support is at 141.00, 138.00, and 136.50 January, with resistance at 145.00, 148.00, and 149.00 January.

COTTON (NYBOT:CTH14)

General Comments: Futures closed little changed as traders waited for the USDA supply and demand estimates that will be released later this morning. Traders expect unchanged ending stocks estimates on increased production and demand. The bulls were encouraged by the good employment data released Friday. The data implied that demand for clothes can increase as more and more people go back to work. There are questions about demand in China as the government there has offered its supplies into the domestic market and as economic data there has been more mixed. Wire reports indicate that some production has been lost in China after some bad weather in some growing áreas, but weather is better again now. Brazil conditions are reported to be very good in Bahia. Harvest in the US should be about done now as winter moves south.

Overnight News: The Delta will be dry all week and Southeast should see some showers and snow through the middle of week, then dry conditions. Temperatures will average below normal this week and near normal this weekend. Texas will see dry conditions. Temperatures will average below normal this week and near normal this weekend. The USDA spot price is 77.15 ct/lb. today. ICE said that certified Cotton stocks are now 0.088 million bales, from 0.091 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 8310, 8690, and 8940 March. Support is at 79.60, 79.40, and 78.90 March, with resistance of 80.95, 81.70, and 82.20 March.

COFFEE (NYBOT:KCH14)

General Comments: Futures were higher in London, but lower in New York. It was mostly a quiet session with little interest showing from buyers or sellers. Roasters and others look for supplies and some have turned to Arabica, although not enough to move New York futures. Vietnamese keep holding out for higher prices, and futures in London have responded as the major roasters are reluctant to change the blends and add Arabica in a big way. The Arabica market is seeing only light offers, but buying interest for Arabica overall remains limited. Colombia and Peru remain the most active sellers. The Brazil market there remains quiet as producers wait for prices to rally above the cost of production. The rest of northern Latin America was quiet, but there is talk of a lot of Coffee there as well. Central America is showing light offers as the harvest progresses under mostly good conditions. New York is trading in a range and is testing support areas.

Overnight News: Certified stocks are near unchanged today and are about 2.669 million bags. The ICO composite price is now 102.52 ct/lb. Brazil will get scattered showers this week. Temperatures will average near to below normal. Colombia should get scattered showers, and Central America and Mexico should get mostly dry weather, but showers are likely in northern Mexico. Temperatures should average near to above normal.

Chart Trends: Trends in New York are mixed. Support is at 105.50, 104.00, and 101.00 March, and resistance is at 109.00, 111.00, and 113.00 March. Trends in London are up with objectives of 1840 and 1970 January. Support is at 1680, 1660, and 1630 January, and resistance is at 1730, 1750, and 1770 January. Trends in Sao Paulo are mixed. Support is at 129.00, 128.00, and 125.00 March, and resistance is at 133.00, 135.00, and 136.50 March.

SUGAR (NYBOT:SBH14)

General Comments: Futures were lower again and made new lows for the move again. The primary focus of the market remains big supplies. Increased offers from India and Thailand combined with news that Coopersucar will start to export from its Santos terminals next month to keep big supplies in front of everyone. Coopersucar said last week that it should have its export warehouse open in part again next month and expects to meet all export targets for this year and next year. The market needs some demand news, but has had trouble finding any demand outside of normal. Chart trends remain down in New York and London. Weather conditions in key production areas around the world are rated as mostly good.

Overnight News: Brazil could see showers and near to above normal temperatures.

Chart Trends: Trends in New York are down with no objectives. Support is at 1655, 1640, and 1610 March, and resistance is at 1685, 1700, and 1715 March. Trends in London are down with objectives of 446.00 March. Support is at 446.00, 440.00, and 434.00 March, and resistance is at 454.00, 460.00, and 465.00 March.

COCOA (NYBOT:CCH14)

General Comments: Futures closed lower on some speculative selling amid no demand news and good harvest conditions in West Africa. Very little has changed fundamentally, and that could become a challenge for the bulls as the market needs news to keep he move higher intact. Supplies should be available now as the main crop harvest is still active in West Africa. Reports indicate that rains are minimal this week in West Africa, which should help harvest progress and processing progress. Much of West Africa is now reporting reduced production due to stressful conditions earlier in the growing season, but this has yet to bear out in official data outside of Nigeria. The overall fundamental picture should support generally higher prices as the supply situation should be tight once the harvest selling is done. Midcrop production conditions are rated as good and a good mid-crop production is expected in the Spring.

Overnight News: Mostly dry conditions are expected in West Africa. Temperatures will average mostly above normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near to above normal. Brazil will get dry conditions and near normal temperatures. ICE certified stocks are lower today at 3.340 million bags.

Chart Trends: Trends in New York are mixed. Support is at 2730, 2700, and 2650 March, with resistance at 2790, 2840, and 2870 March. Trends in London are mixed. Support is at 1710, 1680, and 1660 March, with resistance at 1775, 1790, and 1820 March.

See the original article >>

No comments:

Post a Comment

Follow Us