Softs Report - Monday, Dec. 7

COTTON
General Comments: Cotton closed lower but held inside its recent trading range on the charts. 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. The rains and winds could have damaged fiber and blown fiber out of the bolls. The weekly export sales report showed strong demand last week. 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 Southeast. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions and below normal temperatures. The USDA average price is now 67.21 ct/lb. ICE said that certified stocks are now 100,647 bales, from 101`,220 bales yesterday. ICE said that 10 notices were posted for delivery against December contracts and that total deliveries for the month are now 318 contracts.
Chart Trends: Trends in Cotton are mixed to down with objectives of 6980 and 6740 March. Support is at 7100, 7020, and 6890 March, with resistance of 7290, 7340, and 7350 March.

field of cotton trees

image source

FCOJ
General Comments: FCOJ was lower last week after failing to make new highs for the move on the charts. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms. 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 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.
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 123.00, 122.00, and 120.00 January, with resistance at 127.00, 129.00, and 131.00 January.

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