Softs Report - Tuesday, Oct. 26

General Comments: Futures were a little higher after a day of choppy trading. Ideas of weakening demand due to weaker world economies hurt the futures market but demand has been very good in the world market. The weekly export sales report was strong. Demand or US Cotton remains very strong and that is good news for sellers as the strong demand implies strong prices should continue. The demand is expected to be strong from Asian countries as world economies recover from Covid lockdowns. Analysts say the demand is still very strong and likely to hold at high levels for the future. Good US production is expected, but there are some questions about the overall production in Texas. There are ideas of less production from India due to recent adverse weather in Cotton areas there. Chinese Cotton areas have had too much rain as well, and Chinese demand is also strong as clothes makers use foreign Cotton to get away from domestic supplies that might have been produced by forced labor and might not be allowed in the US or other western countries
Overnight News: The Delta will get scattered showers and near to above normal temperatures. The Southeast should see mostly dry conditions or isolated showers and near to above normal temperatures. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 105.36 ct/lb. ICE said that certified stocks are now 26,021 bales, from 26,284 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 10590, 10530, and 10350 December, with resistance of 11130, 11290 and 11390 December.

Image by Ulrike Leone from Pixabay

General Comments: FCOJ was mostly a little higher and chart trends are starting to turn up. Only nearby November was weaker on some long liquidation before the deliveries start at the beginning of next month. The hurricane season is just about over and the chances for a damaging storm to hit the state of Florida are almost nothing. The weather remains generally good for production around the world. Brazil has some rain is in the forecast and flowering will be possible in the next couple of weeks. Weather conditions in Florida are rated mostly good for the crops with a couple of showers and near normal temperatures. Mexican crop conditions in central and southern areas are called good with rains. Northern and western Mexico is rated in good condition.
Overnight News: Florida should get dry conditions or isolated showers. Temperatures will average near to above normal. Brazil should get scattered to isolated showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 130.00 and 137.00 November. Support is at 122.00, 118.00, and 116.00 November, with resistance at 129.00, 132.00, and 134.00 November.

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