Soft Report - Thursday, July 22

COTTON
General Comments: Futures were a little higher on demand concerns as ideas of strong demand continue. Analysts say the demand is still very strong and likely to hold at high levels for the future. Production ideas are being impacted in just about all areas due to the weather extremes. Demand was increased in the weekly export sales report and is expected to stay strong as the world economy rebounds from the Covid times.
Overnight News: The Delta will get isolated showers and near to below normal temperatures and Southeast will get scattered showers and near to below normal temperatures. Texas will have mostly dry conditions and near to below normal temperatures. The USDA average price is now 84.98 ct/lb. ICE said that certified stocks are now 103,005 bales, from 107,517 bales yesterday. USDA said that net Upland Cotton export sales were 40,000 bales this year and 251,900 bales next year. Net Pima sales were 3,400 bales this year and 900 bales next year.
Chart Trends: Trends in Cotton are mixed. Support is at 8630, 8590, and 8470 December, with resistance of 9000, 9060 and 9120 December.

Image by zanna-76 from Pixabay

FCOJ
General Comments: FCOJ closed lower yesterday in correction trading, but remains generally strong on news of freezing temperatures in Sao Paulo Brazil that could have affected the production of Oranges in the state. Weather conditions in Florida are rated mostly good for the crops. The Atlantic is turning more active although nothing has formed to threaten the state of Florida yet. A big storm could threaten trees and fruit. Brazil is reported to be cold and dry. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near normal temperatures. ICE said that 0 notices were posted for delivery against July contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 135.00 and 142.00 September. Support is at 128.00, 126.00, and 125.00 September, with resistance at 134.00, 135.00, and 138.00 September.

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