Softs Report - Monday, Nov. 30

General Comments: Cotton closed higher after testing recent highs made about a month ago. 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. 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.
Overnight News: The Delta and Southeast will get mostly dry conditions. 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 68.67 ct/lb. ICE said that certified stocks are now 116,316 bales, from 115,929 bales yesterday. ICE said that 12 notices were posted for delivery against December contracts and that total deliveries for the month are now 265 contracts.
Chart Trends: Trends in Cotton are mixed to up with objectives of 7540 and 7870 March. Support is at 7270, 7190, and 7100 March, with resistance of 7430, 7470, and 7500 March.

field of cotton trees

image source

General Comments: FCOJ was higher again last week. 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.
Chart Trends: Trends in FCOJ are mixed. 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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