Cotton mixed as buyers wait for pullbacks

COTTON

General Comments:  Futures were mixed, with a lot of spreading and position liquidation noted as July deliveries start today.  But, the USDA reports from last week kept the buyers interested on setbacks.  Traders talk of reduced production potentially due to the poor weather seen until recently in the Delta and Southeast and still reported in parts of Texas.  Trends are up.  Ideas of good weather for U.S. crops are still around.  Traders are worried about Chinese demand, but there is talk that overall demand increased in the last week.  The weather has improved, but it is still too dry in Texas and drier weather is needed for the Delta and Southeast.  Dry conditions are forecast for the Delta and Southeast, and dry and warm weather is expected in Texas.  Weather for Cotton appears good in India, Pakistan and China.

Overnight News:  The Delta and Southeast will see some showers this week.  Temperatures will average above normal.  Texas will get dry weather.  Temperatures will average above normal.  The USDA spot price is now 87.10 ct/lb.  ICE said that certified Cotton stocks are now 0.543 million bales, from 0.539 million yesterday.

Chart Trends:  Trends in Cotton are up with no objectives.  Support is at 89.60, 88.20, and 87.55 October, with resistance of 90.80, 91.40, and 92.00 October.

FCOJ

General Comments:  Futures closed higher in consolidation trading to end the week.  USDA lowered production of Oranges in Florida, but decreased production had been expected.  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.  Temperatures are warm in the state, but there are showers reported somewhere in the state every day now.  The Valencia harvest is continuing.  Brazil is seeing near to above normal temperatures and dry weather.

Overnight News:  Florida weather forecasts call for light showers.  Temperatures will average near to above normal.   

Chart Trends:  Trends in FCOJ are mixed.  Support is at 148.00, 145.00, and 144.00 July, with resistance at 154.00, 156.00, and 159.00 July.

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