Cotton climbs on poor planting conditions

COTTON

General Comments: Futures were higher in range trading. The new crop months were firmer on the informal planted area estimates and forecasts for some rain in production areas this week to keep planting slow. Ideas are that the demand can continue for now as China moves to increase its stocks and as private buyers there reject offers from the government due to quality and price. Planting conditions for the next crop remain a problem in the U.S. Dry weather is forecast for the Delta and Southeast, and much warmer weather is expected in Texas this week. Ideas are that farmers can get a lot of planting done with dry and warm conditions. Short term trends are mixed.

Overnight News: The Delta and Southeast will see dry conditions or afternoon showers. Temperatures will average near to above normal. Texas will get mostly dry weather. Temperatures will average mostly above normal. The USDA spot price is now 81.33 ct/lb. ICE said that certified Cotton stocks are now 0.509 million bales, from 0.509 million yesterday. Inform now estimates US Cotton planted área at 10.241 million acres, from 10.367 million in March.

Chart Trends: Trends in Cotton are mixed. Support is at 85.40, 85.00, and 83.00 July, with resistance of 87.10, 87.60, and 88.50 July.

FCOJ

General Comments: Futures closed lower on no news and speculative selling. Traders are wrestling with more reports of losses from greening disease on the one side and beneficial rains that have hit the state. More rains are possible this week to aid the crops. The growing conditions in Florida are improved with the recent rains, but many areas remain too dry. Greening disease and what it might mean to production prospects continues to be a primary support item and will be for several years. 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, but some showers are possible late this week.

Overnight News: Florida weather forecasts call for scattered showers much of the week. Temperatures will average near to above normal this week and near normal this weekend.

Chart Trends: Trends in FCOJ are mixed. Support is at 140.00, 137.50, and 136.00 July, with resistance at 145.00, 147.00, and 150.00 July.

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