Softs Report - Friday, Jan. 15


General Comments:  Cotton closed higher and chart trends are now looking positive for prices. The USDA reports on Tuesday are still controlling the price action and the e]weekly export sales report was strong again with some significant buying by China.USDA cut production by another 1.0 million bales and increased export demand. Domestic demand was trimmed a bit, but ending stocks dropped sharply. Traders had expected USDA to drop production and ending stocks estimates, but not by as much as USDA did. The US weather outlook calls for drier and colder weather for Texas after some big snows over the weekend. It should be colder in the Delta and Southeast as well. Attention for overseas weather has turned south and it is dry in Bahia, Brazil

Overnight News: The Delta and Southeast will get mostly dry conditions or isolated showers. Temperatures should average near normal. Texas will have mostly dry conditions and mostly near-normal temperatures. The USDA average price is now 76.78 ct/lb.ICE said that certified stocks are now 68,631 bales, from 68,631 bales yesterday.

Chart Trends:  Trends in Cotton are up with objectives of 8270 and 8540 March. Support is at 8030, 7960, and 7870 March, with resistance of 8220, 8280, and 8940 March.


General Comments:  FCOJ closed a little higher with the market still reacting to the reduced Florida production estimates earlier this week from USDA. The weather in Florida remains good for the crops although it has been cold recently. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and foodservice 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 and irrigation is being used. Showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again next week. Mexican crop conditions are called good with rains.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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