Softs Report - Friday, June 25

COTTON
General Comments: Futures were a little lower in correction trading. Ideas that crops in the Delta were hurt by the recent tropical storm that passed through the region provided the best support. Trends are up on the daily charts. Cotton growing conditions have improved in the last couple of weeks with rains reported in West Texas and perhaps flooding rains the Delta. The Southeast missed the biggest rains and East Texas has been dry. West Texas is expected to dry down this week but the Delta could get some big storms. Some scattered showers are in the forecast in the Southeast. Production ideas are being impacted in just about all areas due to the weather extremes.
Overnight News: The Delta will get scattered showers and near-normal temperatures and the Southeast will get scattered showers and near to below normal temperatures. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 83.42 ct/lb. ICE said that certified stocks are now 165,925 bales, from 165,025 bales yesterday. ICE said that 76 notices were posted for July delivery and that total deliveries for the month are now 115 contracts.
Chart Trends: Trends in Cotton are mixed to up with objectives of 8790 and 9040 December. Support is at 8600, 8540, and 8410 December, with resistance of 8710, 8750, and 8850 July.

FCOJ
General Comments: FCOJ closed a little higher for one more day and chart trends are still mixed on the daily charts. The hurricane season is here and a big storm could threaten trees and fruit. An active season is anticipated but that does not mean a big and damaging storm is coming. It does mean that the market will be on alert if one does show up. Storms from the Gulf of Mexico have gone north of the state in the past couple of weeks. Brazil is reported to be in good condition. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. It is dry in northern and western Mexican growing areas but there is some potential for some rains soon.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions or isolated showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 115.00, 113.00, and 112.00 July, with resistance at 120.00, 122.00, and 126.00 July.

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