Softs Report - Thursday, Sept. 24

General Comments: Cotton closed a little lower on the stronger US Dollar and as the harvest shows signs of progressing. Cotton was also weaker as the Coronavirus was making a comeback in Europe. Governments there are locking down again so stores will be closing. US Cotton demand depends largely on exports so the higher US Dollar was negative for US Cotton futures. Demand has improved over the last couple of weeks and export demand was very strong last week. Demand should stay generally 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. The harvest is increasingly active and the tropical season is active. There will be fewer chances to inflict more damage on the crops to help try to rally prices.
Overnight News: The Delta will get moderate rain through Thursday, then dry conditions and Southeast will get scattered showers into the weekend. Temperatures should be near to above normal. Texas will have mostly dry conditions. Temperatures will trend to above normal. The USDA average price is now 59.64 ct/lb. ICE said that certified stocks are now 8,339 bales, from 7,466 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 6470, 6340, and 6320 December, with resistance of 6620, 6680 and 6720 December.

General Comments: FCOJ was lower once again on the higher US Dollar and the good growing conditions seen in Florida so far this year. 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. The lack of damaging weather usually means lower prices for futures. The Coronavirus is still promoting consumption of FCOJ at home. 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. 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 scattered to isolated showers. Temperatures will average near to above normal. Brazil should get dry conditions and near to above normal temperatures. ICE said that 0 notices were posted against September contracts for delivery and that deliveries for the month are now 273 contracts.
Chart Trends: Trends in FCOJ are down with objectives of 104.00 November. Support is at 106.00, 100.00, and 97.00 November, with resistance at 113.00, 117.00, and 119.00 November.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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