Softs Report - Tuesday, Dec. 1

COTTON
General Comments: Cotton closed lower on some speculative long liquidation before the end of the month and improved US harvest weather. Harvest is ongoing amid drier weather conditions in West Texas and the Delta and Southeast. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive winds and rains caused by the hurricanes, but these crops have had chances to recover damaged quality now. The rains and winds could have damaged fiber and blown fiber out of the bolls. The weekly export sales report showed strong demand last week. Demand should stay generally weak as long as the Coronavirus is around, but the recent announcements of vaccines to become available helped support better demand ideas. Ideas are that economic activity will greatly improve once the vaccines become readily available in several months from now.
Overnight News: The Delta and Southeast will get mostly dry conditions. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions and below normal temperatures. The USDA average price is now 67.65 ct/lb. ICE said that certified stocks are now 116,316 bales, from 115,929 bales yesterday. ICE said that 12 notices were posted for delivery against December contracts and that total deliveries for the month are now 265 contracts. USDA said that 84% of US Cotton is now harvested, from 77% last week, 82% last year, and 79% average.
Chart Trends: Trends in Cotton are mixed. Support is at 7190, 7100, and 7020 March, with resistance of 7350, 7430 and 7470 March.

FCOJ
General Comments: FCOJ was a little higher in featureless trading. Trends are turning up again in this market. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is dining out. The weather in Florida is good with frequent showers to promote good tree health and fruit formation. Brazil has been too dry and irrigation is being used. Showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again next week. Mexican crop conditions are called good with rains.
Overnight News: Florida should get isolated showers or dry conditions. Temperatures will average below normal. Brazil should get scattered showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 130.00 January. Support is at 128.00, 126.00, and 124.00 January, with resistance at 131.00, 134.00, and 137.00 January.

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