Softs Report - Friday, March 12

COTTON       

General Comments: Futures were higher in recovery trading. The chart trends are mixed on the daily charts. The passage of the Covid 19 stimulus [package by Congress weakened the UDS Dollar and helped promote better demand ideas. The weekly export sales report showed solid Cotton demand.USDA cut ending stocks slightly by cutting production and also domestic demand.USDA said that the domestic industry was slow to rebound after the Coronavirus kept many at home. The demand for US Cotton in the export market has been strong even with the Coronavirus and the strong demand could continue as USDA also cut Brazil production due to reduced planted area this year. The US Dollar has started to firm recently and could be hurting demand. The US stock market has been generally firm to help support ideas of a better economy here and potentially increased demand for Cotton products.

Overnight News:The Delta will get scattered showers and above normal temperatures and Southeast will get mostly dry conditions and above normal temperatures. Texas will have scattered showers today and tomorrow, then mostly dry conditions and near to below temperatures. The USDA average price is now 79.50 ct/lb. ICE said that certified stocks are now 99,706 bales, from 99,706 bales yesterday.ICE said that 0 notices were posted for delivery against March contracts and that total deliveries for the month are now 91 contracts.USDA said that net weekly Upland Cotton export sales were 212,000 bales this year and 92,200 bales next year.Net Pima sales were 12,400 bales this year and 0 bales next year.

Chart Trends: Trends in Cotton are mixed. Support is at 8660, 8400, and 8280 May, with resistance of 8930, 9010, and 9130 May.

FCOJ 

General Comments: FCOJ closed higher in range trading. The tone of the market is mixed.USDA cut Florida production once again but raised US production due to increased production in California in its production estimates released on Tuesday. Texas estimates were higher than last year but unchanged last month. Some damage to leaves and open flowers was possible in Texas and northern Mexico in the wake of the recent hard freeze, but ideas are that the overall damage was minor. Moderate temperatures are expected for Florida this week. The weather in Florida is good with a few showers to promote good tree health and fruit formation. Showers are falling in Brazil now and crop conditions are called good even with drier than normal soils. 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.

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