Orange juice balances greening disease with good weather

FCOJ

General Comments: Futures closed a little lower on what appeared to be some producer selling and speculative long liquidation. Trends are mixed after the move on Friday and as the price action yesterday was in a narrow range. Traders are wrestling with more reports of losses from greening disease on the one side and beneficial rains that have hit the state on the other. 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 still in use in a few areas. 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 afternoon showers through the week. Temperatures will average near to above normal this week and near normal this weekend.

Chart Trends: Trends in FCOJ are mixed to up with objectives of 160.00 and 177.00 July. Support is at 148.00, 145.00, and 144.00 July, with resistance at 156.00, 159.00, and 162.00 July.

COTTON

General Comments: Futures were higher on ideas of increased demand concerns. Trends turned mixed with the price action yesterday. Ideas of good weather for U.S. crops are still around and were supported in part by the USDA reports released yesterday afternoon. Speculators and mills were said to be the best buyers. Traders are worried about Chinese demand as the economy there shows signs of slowing down. U.S. economic data has been improving, implying that demand might be so bad at home, but bulls got hurt yesterday when the manufacturing index fell for the second month. But, the biggest demand for U.S. Cotton right now comes from China. The weather has improved in all areas with some precipitation in Texas areas and drier weather in the forecast for the next few days for the Delta and Southeast. Dry weather is forecast for the Delta and Southeast, and warm weather is expected in Texas this week. Ideas are that farmers can get a lot of planting done with dry and warm conditions.

Overnight News: The Delta and Southeast will see dry conditions or afternoon showers, with best rain chances over the middle of the week. Temperatures will average near to above normal. Texas will get dry weather or a few showers. Temperatures will average near to below normal. The USDA spot price is now 78.08 ct/lb. ICE said that certified Cotton stocks are now 0.518 million bales, from 0.517 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 81.70, 81.00, and 80.55 July, with resistance of 82.85, 83.60, and 83.80 July.

Next page: Coffee, Sugar and Cocoa

Comments
comments powered by Disqus