Softs Report - Thursday, April 29

General Comments: Futures were lower yesterday and gave back the gains of the previous day. Dry weather continues to threaten Cotton everywhere in the Great Plains although a few showers are in the forecast. It remains very dry in much of Texas right now and that is the most important sate for US production. There are doubts that the export sales report will be strong this week due to the higher prices. The demand for US Cotton in the export market has been strong even with the Coronavirus causing disruptions at the retail level around the world. The US stock market has been generally firm to help support ideas of a better economy here and potentially increased demand for Cotton products. It is dry in western and southern Texas and the planting of Cotton is being delayed. Some showers are expected in western areas in the next couple of days to help there, but it is still dry overall.
Overnight News: The Delta will get mostly dry conditions except for scattered showers tomorrow and Saturday and near to above normal temperatures and Southeast will get dry conditions except for scattered showers tomorrow and Saturday and below normal temperatures. Texas will have dry conditions and near to below normal temperatures. Temperatures will average near to above normal this weekend. The USDA average price is now 85.34 ct/lb. ICE said that certified stocks are now 95,536 bales, from 95,536 bales yesterday. ICE said that 0 notices were posted for delivery against May contracts and that total deliveries for the month are now 66 contracts.
Chart Trends: Trends in Cotton are up with objectives of 9000 July. Support is at 8600, 8450, and 8120 July, with resistance of 9160, 9270, and 9420 July.

General Comments: FCOJ closed slightly lower in range trading. The price action has been bad this week and futures act as if lower prices were coming soon. 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. The hurricane season is coming and a big storm could threaten trees and fruit. That is still a couple of months away. 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. 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 dry conditions this week and scattered showers this weekend. 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. Support is at 110.00, 108.00, and 106.00 May, with resistance at 114.00, 115.00, and 116.00 May.

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