Softs Report - Thursday, Oct. 1

COTTON
General Comments: Cotton closed higher in range trading. The weekly export sales report showed just moderate demand last week. There was no major Chinese demand, unlike the previous week. Demand should stay weak as long as the Coronavirus is around. Shopping is hard to do and many people are still unemployed. This is true in just about all countries. Harvest conditions are good right now amid moderate temperatures and dry weather.
Overnight News: The Delta will get mostly dry conditions, and Southeast will get scattered showers. Temperatures should be below normal in the Delta and in the Southeast. Texas will have mostly dry conditions. Temperatures will average near to below normal. The USDA average price is now 59.68 ct/lb. ICE said that certified stocks are now 14,519 bales, from 14,518 bales yesterday. ICE said that 0 notices were post4ee for delivery against October contracts and that total deliveries for the month are now 20 contracts. USDA said that net weekly Upland Cotton export sales were 233,500 bales this year and 20,6—bales next year. Net Pima sales were 19,500 bales this year and 0 bales next year.
Chart Trends: Trends in Cotton are mixed. Support is at 6470, 6420, and 6340 December, with resistance of 6620, 6660 and 6680 December.

FCOJ
General Comments: FCOJ was higher once again despite the good growing conditions seen in Florida so far this year. A stronger Brazilian Real was supportive. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms with a record amount of tropical storms hitting the US. There are no tropical storms showing right now in the Atlantic for the first time in a whiule. The lack of damaging weather usually means lower prices for futures. The Coronavirus is still promoting consumption of FCOJ at home, but the supplies at grocery stores are good. Restaurant and food service demand has been much less as no one is really dining out. Florida production prospects for the new crop were hurt by an extended flowering period, but the weather is good now with frequent showers to promote good tree health and fruit formation. Import demand to the US should be minimal as US prices remain below those of Europe. Export demand has gone to Brazil due to price and currency relationships. Brazil has been too dry and irrigation is being used. Some showers are in the region now to help in Sao Paulo.
Overnight News: Florida should get isolated showers. Temperatures will average near to below normal. Brazil should get dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are up with objectives of 119.00 and 121.00 November. Support is at 111.00, 106.00, and 100.00 November, with resistance at 117.00, 119.00, and 121.00 November.

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