Softs Report - Wednesday, Dec. 9

COTTON
General Comments: Cotton closed a little lower in consolidation trading. There is a lot of confusion about the rollout of the Coronavirus vaccine and its effects on the economy. For now, the vaccine is restricted to those most at risk and the general population might not get shot for quite a while. Meanwhile, the economy is starting to go down due to a lack of stimulus funding from the federal government. Harvest is ongoing amid drier weather conditions in West Texas and the Delta and Southeast. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive winds and rains caused by the hurricanes. The rains and winds could have damaged fiber and blown fiber out of the bolls. Export demand has held strong despite stay at home orders and weaker economies around the world. Traders now hope for even more demand later as the vaccines are given out and the world economies start to recover.
Overnight News: The Delta and Southeast will get mostly dry conditions except for some showers on Friday in the Delta. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions or isolated showers and above normal temperatures. The USDA average price is now 67.62 ct/lb. ICE said that certified stocks are now 88,901 bales, from 100,390 bales yesterday. ICE said that 36 notices were posted for delivery against December contracts and that total deliveries for the month are now 354 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 7140, 7100, and 7020 March, with resistance of 7250, 7350 and 7430 March.

FCOJ
General Comments: FCOJ was higher on what appeared to be new buying from speculators. They noted that the Florida Movement and Pack report showed that inventories are now 16% below last year. Florida has been spared any hurricanes or other serious storms this year. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is dining out. The weather in Florida is good with frequent showers to promote good tree health and fruit formation. Brazil has been too dry, but showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again this week. Mexican crop conditions are called good with rains.
Overnight News: Florida should get isolated showers or dry conditions. Temperatures will average below normal. Brazil should get scattered showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 124.00, 120.00, and 118.00 January, with resistance at 127.00, 129.00, and 131.00 January.

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