Softs Report - Thursday, April 15

General Comments: Futures were sharply higher on a weaker US Dollar and a recovery in the stock market. The weather has become important. It remains dry in western and southern Texas and planting of Cotton has been delayed. Scattered showers are in the forecast for the next few days to provide some relief and it will be colder. USDA increased export demand and lowered ending stocks levels in its supply and demand updaters released last Friday. Domestic demand was left unchanged. The demand for US Cotton in the export market has been strong. 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 scattered showers and below normal temperatures and the Southeast will get scattered showers late this week and below normal temperatures. Texas will have scattered showers and below normal temperatures. The USDA average price is now 79.74 ct/lb. ICE said that certified stocks are now 95,536 bales, from 95,536 bales yesterday. USDA said that net weekly Upland Cotton export sales were 122,300 bales this year and 22,800 bales next year. Net Pima sales were 3,100 bales this year and 0 bales next year.
Chart Trends: Trends in Cotton are up with objectives of 8500 and 8950 May. Support is at 8120, 7990, and 7930 May, with resistance of 8560, 8660, and 8700 May.

General Comments: FCOJ closed a little higher and started to break out higher from recent trading ranges on the daily charts. The demand for FCOJ is said to be weaker. The weather has turned warmer so less flu is around and the increased vaccination pace means that the coronavirus is less. 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. It is dry in Brazil and crop conditions are called good even with drier than normal soils. Stress to trees could return if the dry weather continues as is in the forecast. Then comes the hurricane season. 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. USDA cut it production estimate again but the market did not react much to the news.
Overnight News: Florida should get scattered showers. Temperatures will average near to above normal. Brazil should get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 113.00, 116.00, and 136.00 My. Support is at 110.00, 108.00, and 106.00 May, with resistance at 112.00, 114.00, and 116.00 May.

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