Softs Report - Tuesday, Jan. 19

COTTON       

General Comments:  Futures were higher in reaction to the USDA reports.  Futures made a new high close on the weekly charts.  USDA cut production and ending stocks levels again last week.  The report was considered bullish by the trade and prices rallied.  The weekly export sales report on Thursday showed strong demand for US Cotton once again, and the demand has been strong even with the Coronavirus around and getting worse.  The overall weaker US Dollar has helped demand ideas as well.  Lower production will mean tight supplies down the road and the futures market is trying to ration demand through price.

Overnight News:  The Delta and Southeast will get mostly dry conditions or isolated showers.  Temperatures should average near normal.  Texas will have mostly dry conditions and mostly near normal temperatures.  The USDA average price is now 76.78 ct/lb.  ICE said that certified stocks are now 68,631 bales, from 68,631 bales yesterday.

Chart Trends:  Trends in Cotton are up with objectives of 8270 and 8540 March.  Support is at 8030, 7960, and 7870 March, with resistance of 8150, 8220 and 8280 March.

FCOJ 

General Comments:  FCOJ closed a little higher with the market still reacting to the reduced Florida production estimates earlier this week from USDA.  The weather in Florida remains good for the crops although it has been cold recently.  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.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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