Softs Report - Monday, Oct. 26


General Comments: Cotton closed higher for the week and trends are up on the weekly charts. Hurricane Delta moved through the Delta and Southeast a couple of weeks ago and did some damage to Cotton. Open bolls were reported in both regions and Cotton fiber was discolored or else blown out of the bolls due to the rain and winds. The discolored Cotton is getting a chance to recover now as it has turned dry and the fiber can be naturally bleached by the Sun. Heavy rains are returning to the Southeast this week and Cotton could be hurt again. The weekly export sales report showed improved demand last week and was considered a reason to buy futures. There was no major Chinese demand. Demand should stay generally weak as long as the Coronavirus is around. Shopping is hard to do and many people are still unemployed.

Overnight News: The Delta and Southeast will get scattered showers. Temperatures should average near to above normal in the Delta and in the Southeast. Texas will have showers and snow. Temperatures will average near to above normal. The USDA average price is now 66.18 ct/lb. ICE said that certified stocks are now 36,963 bales, from 33,731 bales yesterday.

Chart Trends: Trends in Cotton are mixed up with no objectives. Support is at 7000, 6930, and 6840 December, with the resistance of 7220, 7250, and 7280 December.


General Comments: FCOJ was near unchanged after trading on both sides of unchanged last week. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms. The Coronavirus is still promoting the consumption of FCOJ at home. Restaurant and foodservice demand has been much less as no one is really dining out. Florida production prospects for the new crop were hurt by an extended flowering period, but the weather is good now with frequent showers to promote good tree health and fruit formation. Brazil has been too dry and irrigation is being used. Showers are falling in Brazil now. Mexican crop conditions are called good to very good with ample rains.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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