General Comments: Futures were lower on ideas that the higher current prices have hurt demand and encourage U.S. farmers to sell. Bears point to increasing certified stocks levels for reasons to be bearish. Demand bulls noted positive economic data released last week and positive economic data in general as a reason to buy. Export sales have been strong for the last month to six weeks. However, the export sales report was not bullish last week as the demand was down from previous reports. The report showed that China had cancelled some of its recent purchases. The current low new crop prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year. Some are wondering if planted area might be lower this year here in the US due to weak prices against competing crops. The area lost would go mostly to Corn and Soybeans. Current weather featured some precipitation in Delta and Southeast areas, but western Texas was mostly dry. Delta and Southeast areas will be dry. Ideas are that the market can continue to work higher overall.
Overnight News: The Delta and Southeast will see mostly dry conditions. Temperatures will average near to above normal. Texas will get dry weather. Temperatures will average much above normal. The USDA spot price is now 76.21 ct/lb. ICE said that certified Cotton stocks are now 0.146 million bales, from 0.144 million yesterday.
Chart Trends: Trends in Cotton are mixed to down with objectives of 7990 and 7750 March. Support is at 81.20, 80.20, and 79.90 March, with resistance of 82.30, 83.40, and 84.00 March.
General Comments: Futures closed lower on speculative selling tied to weakness in other markets. Ideas are that USDA can show smaller crops in its reports this week due to the greening disease and dry weather that has been reported in Florida. USDA has cut production potential in the previous two estimates and might be forced to trim the estimate a little more next month. Weather remains about the same in Florida. Temperatures remain mild to warm in the state, and conditions are mostly dry. Forecasts do not call for any threatening temperatures, but dry weather is creating ideas that more fruit can be lost. Fruit is holding for now, and irrigation is being used by producers to hold crop condition. Harvest in Florida of mid and early oranges is continuing, and the Valencia harvest is underway. Weather in Brazil is reported to be good. Brazil is seeing near to above normal temperatures and scattered showers. Harvest is continuing, so an increase in supplies should be expected at this time of year.
Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average above normal. The Florida Department of Citrus said that sales totaled 51.9 million gallons in January, from 48.55 million last year.
Chart Trends: Trends in FCOJ are up with objectives of 123.00, 125.00, and 131.00 March. Support is at 120.00, 116.00, and 113.00 March, with resistance at 124.00, 126.00, and 128.00 March.
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