Softs Report - Tuesday, March 23

field of cotton trees

Source: Unsplash 

COTTON

General Comments: Futures were a little lower in consolidation trading. The chart trends are down on the daily charts. The US Dollar was stronger and hurt demand ideas. The weekly export sales report showed solid Cotton demand. 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 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 in Tuesday and Wednesday, otherwise mostly dry conditions and near to below temperatures. The USDA average price is now 80.01 ct/lb. ICE said that certified stocks are now 99,239 bales, from 99,239 bales yesterday.

Chart Trends: Trends in Cotton are mixed to down with objectives of 8250, 8000, and 7980 May. Support is at 8360, 8290, and 8100 May, with a resistance of 8620, 8740, and 8820 May.

FCOJ

General Comments: FCOJ closed a little lower in consolidation trading. The tone of the market is mixed on the daily charts but the weekly charts are still 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.

Overnight News: Florida should get mostly dry conditions or isolated showers. Temperatures will average above normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 notices were posted today for March delivery and that total delivery for the month are now 0 contracts.

1 2 3
View single page >> |

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.