Softs Report - Wednesday, Feb. 24

COTTON       

General Comments:  Old-crop futures were higher and made new highs for the move. New crop futures were generally lower on fears of a big increase in planted area and on bull spreading with the old crop futures. The funds were the best buyers of the old crop months. Demand has been strong even with the Coronavirus around and getting worse. The overall weaker US Dollar has helped demand ideas as well although the Dollar has started to firm recently. The US stock market has been generally firm to help support ideas of a better economy here and potentially increased demand for Cotton products. The market feels tight this year and the USDA Outlook Forum showed a tight scenario for next year with ending stocks at just 3.8 million bales.

Overnight News: The Delta will get scattered showers later this week and near to above normal temperatures and Southeast will get mostly dry conditions and near to above normal temperatures. Texas will have mostly dry conditions and near to below temperatures. The USDA average price is now 87.78 ct/lb.ICE said that certified stocks are now 100,326 bales, from 100,326 bales yesterday.ICE said that 8 notices were posted for delivery against March contracts and that total deliveries for the month are now 41 contracts.

Chart Trends:  Trends in Cotton are up with objectives of 9340 May. Support is at 9080, 9000, and 8910 May, with resistance of 9460, 9420, and 9480 May.

brown seeds

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FCOJ 

General Comments:  FCOJ closed a little higher in recovery trading. May futures are showing the potential for more price gains for the rest of the week. There are reports of light damage to crops in Texas and northeast Mexico from the cold temperatures last week. Moderate temperatures were reported in Florida last 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. Mexican crop conditions otherwise are called good with rains, but earlier dry weather might have hurt production. It is dry in northern Mexican growing areas.

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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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