Softs Report - Thursday, July 1

General Comments: Futures were lower yesterday as USDA reported more planted area than the trade had expected. USDA said that planted area was 11.577 million acres, down from the March intentions but still higher than trade expectations. Cotton growing conditions have improved in the last couple of weeks with rains reported in West Texas and perhaps flooding rains the Delta. The Southeast missed the biggest rains and East Texas has been dry. West Texas is expected to dry down this week but the Delta could get some big storms. Some scattered showers are in the forecast in the Southeast.
Overnight News: The Delta will get scattered showers late this week and near-normal temperatures and Southeast will get scattered showers and near to below normal temperatures. Texas will have scattered showers and below normal temperatures. The USDA average price is now 81.40 ct/lb. ICE said that certified stocks are now 135,200 bales, from 135,200 bales yesterday. ICE said that 0 notices were posted for July delivery and that total deliveries for the month are now 115 contracts. USDA said that net Upland Cotton export sales were 42,500 bales this year and 133,900 bales next year. Net Pima sales were 2,200 bales this year and 100 bales next year.
Chart Trends: Trends in Cotton are mixed to down with no objectives. Support is at 8400, 8340, and 8300 December, with resistance of 8590, 8700, and 8790 December.

General Comments: FCOJ closed higher yesterday in recovery trading and chart trends are still mixed on the daily charts. There are some tropical storms in the Atlantic but they do not appear likely to move into Florida. The hurricane season is here and a big storm could threaten trees and fruit. An active season is anticipated but that does not mean a big and damaging storm is coming. It does mean that the market will be on alert if one does show up. Brazil is reported to be in good condition, but dry. It has been cold but any damage is called minor. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northern and western Mexico are getting some rains.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions or isolated showers and above normal temperatures. ICE said that 0 notices were posted for delivery against July contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 120.00, 118.00, and 116.00 September, with resistance at 125.00, 128.00, and 130.00 September.

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