Softs Report - Wednesday, June 9

COTTON
General Comments: Futures were higher in range trading on weather concerns. Trends are still up on the daily charts. Cotton growing conditions have improved with rains reported in West Texas and the Delta. Some say West Texas is now too wet. It is dry in the southeast. Production ideas are being impacted in just about all areas due to the weather extremes. Delta crop conditions are called good. Cotton demand remains solid. Ideas are that Cotton demand can hold strong after a positive export sales report on Friday.
Overnight News: The Delta will get scattered showers and near-normal temperatures and the Southeast will get isolated showers and near to above normal temperatures. Texas will have isolated showers and near to above normal temperatures. The USDA average price is now 80.96 ct/lb. ICE said that certified stocks are now 161,017 bales, from 160,287 bales yesterday.
Chart Trends: Trends in Cotton are up with objectives of 8570, 8850, and 10010 July. Support is at 8360, 8280, and 8160 July, with resistance of 8650, 8870, and 9000 July.

FCOJ
General Comments: FCOJ closed higher once again and made new highs for the move. Chart trends are up. The weather in Florida is good with isolated showers. The hurricane season is coming and a big storm could threaten trees and fruit. An active season is anticipated but that does not mean a big and damaging storm is coming. It does mean that the market will be on alert if one does show up. It is dry in Brazil and trees and fruit are stressed. 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. Florida Mutual said that inventories are 15% less than last year.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and above normal temperatures.
Chart Trends: Trends in FCOJ are up with objectives of 126.00 and 140.00 July. Support is at 122.00, 120.00, and 118.00 July, with resistance at 128.00, 130.00, and 133.00 July.

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