Softs Report - Tuesday, 18

General Comments: Futures were a little higher in recovery trading. Trends have turned down on the daily charts but the weekly charts are holding mixed trends. The WASDE reports released on Wednesday featured a tight ending stocks scenario moving forward for the market. Demand ideas were strong. However, the export sales reports in the last several weeks have been less than hoped for. Buying is still coming from dry weather in Texas although the forecasts for the region are improved with rains seen over the weekend and with more coming and selling is coming from weaker demand as seen in the weekly export sales reports. The demand for US Cotton in the export market was weaker once again last week, but has been strong even with the Coronavirus causing disruptions at the retail level around the world. The US economy is better and is starting to reopen.
Overnight News: The Delta will get scattered showers today and tomorrow, then mostly dry conditions and near to above normal temperatures and Southeast will get mostly dry conditions and near normal temperatures. Texas will have scattered showers and near to below normal temperatures. The USDA average price is now 78.14 ct/lb. ICE said that certified stocks are now 105,098 bales, from 95,536 bales yesterday. ICE said that 0 notices were posted for delivery against May contracts and that total deliveries for the month are now 70 contracts. USDA said that Cotton was 38% planted, from 25% last week, 42% last year, and 40% average.
Chart Trends: Trends in Cotton are down with objectives of 7850 July. Support is at 8120, 8090, and 7900 July, with resistance of 8460, 8610 and 8750 July.

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General Comments: FCOJ closed higher in range trading on what appeared to be speculative buying. Daily and weekly chart trends are turning up. The weather in Florida is good with a few showers or dry weather to promote good tree health and fruit formation. The hurricane season is coming and a big storm could threaten trees and fruit. That is still a couple of months away. It is dry in Brazil and crop conditions are called good even with drier than normal soils. Stress to trees could return if the dry weather continues as is in the forecast. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. It is dry in northern and western Mexican growing areas.
Overnight News: Florida should get mostly dry conditions. Temperatures will average near to above normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 contracts were posted for delivery against May futures and that total deliveries for the month are now 118 contracts.
Chart Trends: Trends in FCOJ are up with objectives of 121.00 and 126.00 July. Support is at 116.00, 113.00, and 112.00 July, with resistance at 120.00, 122.00, and 126.00 July.

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