Softs Report - Thursday, Jan. 21


General Comments:  Futures were higher on ideas that the new Biden administration is ready to go with a new stimulus program that could aid clothing purchases and Cotton demand. The daily charts show a firm tone. The weekly export sales report on Thursday showed strong demand for US Cotton once again, and the demand has been strong even with the Coronavirus around and getting worse. The overall weaker US Dollar has helped demand ideas as well. Lower production will mean tight supplies down the road and the futures market is trying to ration demand through price.

Overnight News: The Delta and Southeast will get scattered showers. Temperatures should average above normal. Texas will have mostly dry conditions after scattered showers tomorrow and near to below normal temperatures today, then near to above normal. The USDA average price is now 77.45 ct/lb.ICE said that certified stocks are now 70,649 bales, from 70,649 bales yesterday.

Chart Trends:  Trends in Cotton are mixed to up with objectives of 8270 and 8540 March. Support is at 8030, 7960, and 7870 March, with resistance of 8220, 8280, and 8340 March.


General Comments:  FCOJ closed higher in consolidation trading. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and foodservice 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. It is turning a little drier there this week. 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. Mexican crop conditions are called good with rains.

Overnight News: Florida should get isolated showers or dry conditions. Temperatures will trend to below normal. Brazil should get scattered showers and near to above normal temperatures. ICE said that 0 notices were posted for delivery against January contracts today and that total deliveries for the month are now 0 contracts.

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