Softs Report - Friday, Dec. 11

COTTON
General Comments: Cotton closed higher and trends are up. USDA made a big cut in ending stocks projections in its WASDE updates yesterday. Production was cut back by a lot and export demand increased. Traders are optimistic about demand. There is a lot of confusion about the rollout of the Coronavirus vaccine and its effects on the economy. For now the vaccine is restricted to those most at risk and the general population might not get shot for quite a while. Meanwhile, the economy is starting to go down due to a lack of stimulus funding from the federal government. Harvest is ongoing amid drier weather conditions in West Texas and the Delta and Southeast. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive winds and rains caused by the hurricanes. Export demand has held strong despite stay at home orders and weaker economies around the world. Traders now hope for even more demand later as the vaccines are given out and the world economies start to recover.
Overnight News: The Delta and Southeast will get mostly dry conditions except for some showers on Friday in the Delta. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions or isolated showers and above normal temperatures. The USDA average price is now 68.69 ct/lb. ICE said that certified stocks are now 86,544 bales, from 86,544 bales yesterday. ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 354 contracts.
Chart Trends: Trends in Cotton are mixed to up with objectives of 7440, 7490, and 7740 March. Support is at 7250, 7200, and 7140 March, with resistance of 7450, 7430 and 7470 March.

FCOJ
General Comments: FCOJ was lower in response to the USDA reports that showed more production in Florida than expected by the trade. Production was estimated at 56 million boxes. The fundamentals remain mixed to negative. Florida has been spared any hurricanes or other serious storms this year. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is dining out. The weather in Florida is good with frequent showers to promote good tree health and fruit formation. Brazil has been too dry, but showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again this week. Mexican crop conditions are called good with rains.
Overnight News: Florida should get isolated showers or dry conditions. Temperatures will average below normal. Brazil should get scattered showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 120.00, 118.00, and 113.00 January, with resistance at 124.00, 127.00, and 129.00 January.

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