Softs Report - Monday, March 29

General Comments: Futures were lower on speculative selling tied to demand fears due to the potential return on the Coronavirus and a much stronger US Dollar. The weekly export sales report was strong, but not nearly as strong as the previous week. Rains in Texas were negative for prices as well. The trends turned down on the weekly charts due to the price action of last week. The chart trends are down on the daily charts. 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 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 mostly dry conditions and above normal temperatures and the Southeast will get scattered showers and above normal temperatures. Texas will have mostly dry conditions and near-normal temperatures. The USDA average price is now 75.77 ct/lb. ICE said that certified stocks are now 95,801 bales, from 95,801 bales yesterday.
Chart Trends: Trends in Cotton are down with objectives of 7980 May. Support is at 7800, 7660, and 7500 May, with resistance of 7920, 8100, and 8290 May.

field of cotton trees

Source: Unsplash 

General Comments: FCOJ closed a little higher and the trends are now sideways on the daily charts. Support is showing at current price levels as futures do not appear ready to make new lows on the daily charts. The demand for FCOJ is said to be weaker as the Coronavirus has been less in the US. The weather has turned warmer so less flu is around as well. Moderate temperatures are expected for Florida this week. The weather in Florida is good with a few showers or dry weather to promote good tree health and fruit formation. Showers have fallen in Brazil, but it is dry now and crop conditions are called good even with drier than normal soils. Stress to trees could return if the dry weather continues. 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 above normal. Brazil should get mostly dry conditions 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. Support is at 109.00, 106.00, and 104.00 May, with resistance at 114.00, 116.00, and 118.00 May.

1 2 3
View single page >> |

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 ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.