Softs Report - Monday, July 12

COTTON
General Comments: Futures were higher on Friday and for the week on weather concerns and on ideas of increasing demand. News of another tropical system moving through the Southeast helped support futures prices. Elsa went up the East Coast and the Southeast was threatened with big rains and perhaps some wind. The wind turned out to be a non event but there as a lot of rain in parts of the region. Most affected Cotton areas were in Georgia and the Carolinas. Cotton growing conditions have improved with rains reported in West Texas and less rain the Delta. Texas should get some showers this week. Some scattered showers are in the forecast in the Delta and Southeast. Production ideas are being impacted in just about all areas due to the weather extremes. Demand was increased in the weekly export sales report and is expected to stay strong as the world economy rebounds from the Covid times.
Overnight News: The Delta will get scattered showers and near to below normal temperatures and Southeast will get scattered showers and near to below normal temperatures. Texas will have scattered showers and below normal temperatures. The USDA average price is now 83.88 ct/lb. ICE said that certified stocks are now 117,565 bales, from 119,910 bales yesterday. ICE said that 2 notices were posted for July delivery and that total deliveries for the month are now 117 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 8630, 8590, and 8470 December, with resistance of 8790, 8830 and 8930 December.

Image by JamesDeMers from Pixabay

FCOJ
General Comments: FCOJ closed higher in very quiet trading as a tropical system passed very close to the west coast of Florida but did no damage to Citrus. Elsa passed by Florida yesterday, but there were no damaging winds from the system. The state got excessive rainfall in some areas, but mostly away from Citrus areas. A big storm could threaten trees and fruit. Brazil is reported to be in good condition, but dry. It has been cold but any damage is called minor. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northern and western Mexico areas are getting some rains and conditions are rated mostly good. Some areas have had too much rain.
Overnight News: Florida should get scattered showers with heavy amounts today. Temperatures will average near normal. Brazil should get mostly dry conditions and near normal temperatures. ICE said that 0 notices were posted for delivery against July contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are up with objectives of 131.00 September. Support is at 122.00, 121.00, and 120.00 September, with resistance at 128.00, 130.00, and 132.00 September.

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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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