Softs Report - Friday, March 19

General Comments: Futures were lower on fund and other speculator selling due to a stronger US Dollar and as some beneficial rains feel in the southern US. The chart trends are mixed on the daily charts. Rains in some of the Texas growing areas have improved planting conditions and initial growth ideas are strong. The passage of the Covid 19 stimulus package by Congress weakened the US Dollar and helped promote better demand ideas. 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 dry conditions and above normal temperatures and Southeast will get scattered showers and below normal temperatures. Texas will have mostly dry conditions and near to below temperatures. The USDA average price is now 80.84 ct/lb. ICE said that certified stocks are now 99,706 bales, from 99,706 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 8460, 8380, and 8300 May, with resistance of 8740, 8820, and 9000 May.

assorted food in sacks

Image Source: Unsplash

General Comments: FCOJ closed higher in recovery trading. The weekly charts are still showing a completed bottom formation. 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.
Overnight News: Florida should get mostly dry conditions or isolated showers. Temperatures will average near to above normal, then below normal early next week. Brazil should get scattered showers and near to above normal temperatures. ICE said that 0 notices were posted today for March delivery and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 122.00, 128.00, and 130.00 May. Support is at 113.00, 111.00, and 109.00 May, with resistance at 120.00, 122.00, and 124.00 May.

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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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