Softs Report - Thursday, Sept. 9

COTTON
General Comments: Futures were mixed for the second day. Demand reports are a little soft before the USDA reports late this week. The demand is expected to be strong from Asian countries as world economies recover from Covid lockdowns. Analysts say the demand is still very strong and likely to hold at high levels for the future. However, the expansion of the Delta variant has given pause to the better demand ideas due to fears of economies here and around the world starting to partially lock down again. Production ideas are being impacted in just about all areas due to the weather extremes. It has been very hot in parts of Texas and the Delta and Southeast have had drenching rains at various times in the last couple of months. Even so, good US production totals are expected.
Overnight News: The Delta will get mostly dry conditions and near-normal temperatures and Southeast will get isolated to scattered showers and near-normal temperatures. Texas will have mostly dry conditions and above normal temperatures. The USDA average price is now 91.34 ct/lb. ICE said that certified stocks are now 64,455 bales, from 66,543 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 9340, 9210, and 9180 December, with resistance of 9510, 9600, and 9630 December.

Photo by 🇸🇮 Janko Ferlič on Unsplash

FCOJ
General Comments: FCOJ closed lower, but trends are still mostly up on weather concerns, especially for Brazil but also for Florida and Mexico. A freeze hit Sao Paulo state several weeks ago and reports of significant losses are being heard. Weather conditions in Florida are rated mostly good for the crops with scattered showers and near-normal temperatures. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and above normal temperatures. ICE said that 0 notices were posted for delivery against September contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 135.00, 130.00, and 128.00 November, with resistance at 138.00, 143.00, and 144.00 November.

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