Orange juice moves higher as greening disease losses advance

FCOJ

General Comments: Futures closed higher in recovery trading. Traders are wrestling with more reports of losses from greening disease on the one side and beneficial rains that have hit the state. The rains over the weekend and in forecasts for this week appear to be less than expected late last week. Many areas of Florida 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 afternoon 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 139.00, 137.50, and 136.00 July, with resistance at 144.00, 145.00, and 147.00 July.

COTTON

General Comments: Futures were lower in range trading. It was a low volume session as traders waited for the crop progress reports that were released after the close. Traders also were looking for new signs of demand, but were not finding much. 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 US. 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. Showers and storms could last through tomorrow. Temperatures will average near to above normal. Texas will get mostly dry weather, but showers are possible on Friday. Temperatures will average mostly above normal. The USDA spot price is now 80.95 ct/lb. ICE said that certified Cotton stocks are now 0.506 million bales, from 0.510 million yesterday.

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.

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