General Comments: Futures closed higher on stronger demand reports and despite forecasts for beneficial rains in Florida this week. The monthly Neilsen report released yesterday morning showed better demand for FCOJ. The growing conditions in Florida are expected to improve over time as showers and rains are forecast for much of the week. Greening disease and what it might mean to production prospects continues to be a primary support item. Irrigation is widespread, even with recent rains. Temperatures are warm in the state. The Valencia harvest is continuing. Brazil is seeing near to above normal temperatures and dry weather.
Overnight News: Florida weather forecasts call for scattered showers. Temperatures will average near to above normal.
Chart Trends: Trends in FCOJ are mixed. Support is at 140.00, 137.00, and 135.00 May, with resistance at 146.50, 150.50, and 152.00 May.
General Comments: Futures were higher on talk of increased demand and a slow planting pace. Rains are moving through the Delta and Southeast this week to slow planting progress even more, but farmers were reported to be actively planting in the north Texas region as temperatures there turned warmer. An active precipitation pattern is expected in the Delta and Southeast this week. Some traders think that US planted area will increase from the estimates released at the end of March due to more favorable Cotton futures prices and sinking Corn and Soybeans futures prices. The strong price action in the grains and oilseeds created some buying in Cotton futures. Weather will be watched as more wet weather in the Delta and Southeast could create less interest in Corn and more in Cotton to avoid having Corn pollinate in the hottest time of the year. Producers have been active planting depending on the region involved and weather.
Overnight News: The Delta and Southeast will see rains later this week and this weekend. Temperatures will average near to above normal this week and below normal this weekend. Texas will get mostly dry weather, but showers are expected on Thursday. Temperatures will trend to near to above normal through Thursday, then near to below normal. The USDA spot price is now 80.78 ct/lb. ICE said that certified Cotton stocks are now 0.516 million bales, from 0.515 million yesterday. ICE said that delivery notices were 3 contracts today and now total 514 contracts for the month.
Chart Trends: Trends in Cotton are mixed. Support is at 85.10, 83.80, and 82.90 July, with resistance of 86.30, 86.60, and 87.30 July.
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