Softs Report - Monday, Nov. 23

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COTTON
General Comments: Cotton closed higher, but held the recent trading range last week. The weather has improved after a couple of hurricanes hit the Delta and Southeast. It remains dry in West Texas. Harvest is ongoing so increased rains now can only delay things and not improve conditions much. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive 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 weaker demand last week. Demand should stay generally weak as long as the Coronavirus is around, but the recent announcements of vaccines to become available helped support better demand ideas. Ideas are that economic activity will greatly improve once the vaccines become readily available in several months from now. India is also harvesting under what appear to be good conditions. Good production is expected.
Overnight News: The Delta could get scattered showers on Sunday and Southeast will get mostly dry conditions. Temperatures should average near to above normal in the Delta and in the Southeast. Texas will have mostly dry conditions except for some scattered showers on Sunday and above normal temperatures. The USDA average price is now 68.07 ct/lb. ICE said that certified stocks are now 121,046 bales, from 118,394 bales yesterday.
Chart Trends: Trends in Cotton are mixed to up with objectives of 7540 and 7870 March. Support is at 7190, 7100, and 7020 March, with resistance of 7230, 7260 and 7290 March.

FCOJ
General Comments: FCOJ was higher again last week and is starting to get close to weekly chart highs. 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 near to above normal. Brazil should get scattered showers and near to above normal temperatures. ICE said that 0 notices were posted for delivery against November contracts and that total deliveries for the month are 0 contracts.
Chart Trends: Trends in FCOJ are up with objectives of 130.00 January. Support is at 124.00, 122.00, and 120.00 January, with resistance at 130.00, 131.00, and 134.00 January.

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