Softs Report - Tuesday, March 16

COTTON
General Comments: Futures were lower on what appeared to be follow-through speculative selling. The chart trends are mixed on the daily charts. Rains in some of the Texas growing areas have improved planting conditions and initial growth ideas are strong. The passage of the Covid 19 stimulus package by Congress weakened the UDS Dollar and helped promote better demand ideas. The weekly export sales report showed solid Cotton demand. USDA cut ending stocks slightly by cutting production and also domestic demand. USDA said that the domestic industry was slow to rebound after the Coronavirus kept many at home. The demand for US Cotton in the export market has been strong even with the Coronavirus and the strong demand could continue as USDA also cut Brazil production due to reduced planted area this year. The US Dollar has started to firm recently and could be hurting demand. The US stock market has been generally firm to help support ideas of a better economy here and potentially increased demand for Cotton products.
Overnight News: The Delta will get scattered showers and above normal temperatures and the Southeast will get scattered showers and above normal temperatures. Texas will have scattered showers today and tomorrow, then mostly dry conditions and near to below temperatures. The USDA average price is now 82.11 ct/lb. ICE said that certified stocks are now 99,706 bales, from 99,706 bales yesterday. ICE said that 0 notices were posted for delivery against March contracts and that total deliveries for the month are now 91 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 8560, 8460, and 8380 May, with resistance of 8820, 9010, and 9130 May.

assorted food in sacks

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FCOJ
General Comments: FCOJ closed higher and broke above its recent trading range. The tone of the market is positive and the weekly charts are showing a completed bottom formation. Moderate temperatures are expected for Florida this week. The weather in Florida is good with a few showers to promote good tree health and fruit formation. Showers are falling in Brazil now and crop conditions are called good even with drier than normal soils. 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. The Florida Movement and Pack report last week showed that inventories are now about 17% below a year ago.
Overnight News: Florida should get mostly dry conditions. Temperatures will average near to above normal. Brazil should get scattered showers and near to above normal temperatures. ICE said that 0 notices were posted today for March delivery and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 116.00, 113.00, and 111.00 May, with resistance at 118.00, 120.00, and 122.00 May.

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