Softs Report - Tuesday, September 14

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COTTON

General Comments: Futures were lower on some selling generated by the harvest and the increased ending stocks seen in the Friday USDA reports. 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. However, the expansion of the Delta variant has given pause to the better demand ideas due to fears of economies here and around the world starting to partially lockdown again. Production ideas are being impacted in just about all areas due to the weather extremes. It has been very hot in parts of Texas and the Delta and Southeast have had drenching rains at various times in the last couple of months. Even so, good US production totals are expected.

Overnight News: The Delta will get isolated showers with some big rains possible in the south and near-normal temperatures and the Southeast will get isolated to scattered showers and near to above normal temperatures. Texas will have isolated showers or dry conditions and above normal temperatures. The USDA average price is now 90.59 ct/lb. ICE said that certified stocks are now 64,455 bales, from 64,455 bales yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 9200, 9180, and 9160 December, with a resistance of 9370, 9510, and 9600 December.

Crop Progress
Date 12-Sep 5-Sep 2020 Avg
Cotton Setting Bolls 96 94 99 99
Cotton Bolls Opening 36 29 46 43
Cotton Harvested 5 6 8
Crop Condition
Very Poor Poor Fair Good Excellent
Cotton This Week 1 5 30 50 14
Cotton Last Week 1 6 32 50 11
Cotton Last Year 7 20 28 36 9

FCOJ

General Comments: FCOJ closed higher again yesterday and chart trends are still mostly up on weather concerns, especially for Brazil but also for Florida and Mexico. A freeze hit Sao Paulo state several weeks ago and reports of significant losses are being heard. Weather conditions in Florida are rated mostly good for the crops with scattered showers and near-normal temperatures. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition.

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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 ...

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