General Comments: Futures closed higher as traders factor in less production potential due to the greening disease and drought. Temperatures are warm in the state, and conditions are dry, and talk about the potential for more fruit drop and poor development of the crop for next year continues. Harvest in Florida of mid and early oranges is almost over, and the Valencia harvest is underway. Bloom has been reported in groves in all production areas of the state. Brazil is seeing near to above normal temperatures and light showers and could use more rain. More rain is possible there late in the week. ICE said that 0 notices were posted against March contracts and that total deliveries for the month are 0 contracts.
Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average near to below normal.
Chart Trends: Trends in FCOJ are up with objectives of 137.00 May. Support is at 132.00, 124.00, and 122.00 May, with resistance at 137.00, 141.00, and 144.00 May.
General Comments: Futures were lower yesterday as some profit taking was noted after a rally last week before the USDA reports. Demand is still said to be strong, but some buyers are backing away from the market after the rally in prices. Ideas of less planted area also supported Cotton futures again, but most of the talk was of the new demand. The current low new crop prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year, although producers in the Delta are noting the recent price rally and might decide to plant more Cotton 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. The plantings intentions report will be released at the end of the month.
Overnight News: The Delta and Southeast will see dry conditions. Temperatures will average mostly below normal early this week and then near to above normal, with warmest readings in the Delta. Texas will get dry weather. Temperatures will average above normal. The USDA spot price is now 81.45 ct/lb. ICE said that certified Cotton stocks are now 0.415 million bales, from 0.413 million yesterday. ICE said that 0 contracts were delivered yesterday and that total deliveries for the month are 1,542 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 86.10, 85.80, and 85.60 May, with resistance of 87.50, 88.70, and 88.90 May.
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