Softs Report - Tuesday, June 30

General Comments Cotton closed mostly a little higher as bad growing conditions continued in West Texas. USDA showed slightly improved crop conditions in its weekly updates this week. Signs of an improving economy in the US and around the world really helped ideas of better Cotton demand as did reports of a lot of masks being made for use during the Coronavirus epidemic. The world is starting to slowly recover from the Coronavirus scare and some stores are starting to open again after being closed for weeks. However, some states and countries are sliding backwards and could impose new restrictions soon. The situation remains hard to figure out. The retail demand has been slow to develop as many consumers got hurt economically due to stay at home orders during the height of the pandemic and have little disposable funds to spend on clothes. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth.
Overnight News: The Delta will get isolated showers and Southeast will get scattered showers. Temperatures should be near to above normal. Texas will have isolated showers. Temperatures will average near to above normal. The USDA average price is now 56.30 ct/lb. ICE said that certified stocks are now 36,344 bales, from 34,906 bales yesterday. ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 171 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 5880, 5860, and 5780 December, with resistance of 6020, 6050 and 6110 December.

General Comments: FCOJ was a little higher with July leading the way and looking for deliveries. Processors are not willing to deliver at current values due to reduced production and a stronger cash market. Florida production is now estimated at less than 68 million boxes. Demand from grocery stores has remained strong in response to the increased consumer demand. The Coronavirus is making a comeback in the US and more lock downs are possible. Inventories in cold storage remain solid so there will be FCOJ to meet the demand. There is increasing concern about the food service demand not improving even with the partial opening of the states. The weather in Florida is currently good for the crops. The tree condition is called good. The Valencia harvest is almost over. Brazil has been dry and irrigation has been used. Shipping from Brazil is more problematic due to the massive outbreak of the Coronavirus there.
Overnight News: Florida should get ixolated showers. Temperatures will average near to above normal. Brazil should get dry conditions and near to below normal temperatures.
Chart Trends: Trends in FCOJ are up with objectives of 130.00 and 136.00 September. Support is at 125.00, 123.00, and 121.00 September, with resistance at 128.00, 129.00, and 132.00 September.

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