Softs Report - Tuesday, May 25

General Comments: Futures were a little higher yesterday. Trends are mixed on the daily charts. Cotton growing conditions have improved. The export sales reports in the last several weeks have been less than hoped for but were improved last week. The forecasts for the Panhandle region of Texas are improved with rains seen over last week and with more coming. It is drier in the Southeast and Delta production areas and this is beneficial for now. The Southeast needs to be watched as conditions there could turn too hot and dry. The demand for US Cotton in the export market was improved last week and has been strong even with the Coronavirus causing disruptions at the retail level around the world. The US economy is better and is starting to reopen.
Overnight News: The Delta will get isolated showers and near to above normal temperatures and the Southeast will get mostly dry conditions and above normal temperatures. Texas will have isolated showers and near to above normal temperatures. The USDA average price is now 78.64 ct/lb. ICE said that certified stocks are now 136,192 bales, from 131,061 bales yesterday. USDA said that Cotton was 49% planted, from 38% last week, 52% last year, and 52% average.
Chart Trends: Trends in Cotton are mixed. Support is at 8150, 8120, and 8090 July, with resistance of 8430, 8460, and 8610 July.

General Comments: FCOJ closed a little lower in range trading. Trends are still trying to turn up in this market. The weather in Florida is good with mostly dry weather. The hurricane season is coming and a big storm could threaten trees and fruit. That is still a month away. It is dry in Brazil and crop conditions are called good even with drier than normal soils. Stress to trees could return if the dry weather continues as is in the forecast. 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. Temperatures will average near to above normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 contracts were posted for delivery against May futures and that total deliveries for the month are now 118 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 113.00, 112.00, and 110.00 July, with resistance at 118.00, 120.00, and 122.00 July.

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