Orange juice lower as better weather seen in Florida

FCOJ

General Comments:  Futures closed lower to start the week.  Better weather in Florida seems to be the big problem for the bulls at this time.  Futures have been working generally lower as showers have been seen and conditions are said to have improved in almost the entire state.  Ideas are that the better precipitation will help trees fight the greening disease.  No tropical storms are in view to cause any potential damage.  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 but is almost over.  Brazil is seeing near to above normal temperatures and mostly dry weather, but showers are possible next week.

Overnight News:  Florida weather forecasts call for showers.  Temperatures will average near to above normal.  Nielsen said that domestic retail sales of orange juice were 39.89 million gallons, down 4.2% from the previous four week period.   

Chart Trends:  Trends in FCOJ are down with objectives of 137.00, 133.00, and 130.00 July.  Support is at 139.00, 137.50, and 136.00 July, with resistance at 145.00, 146.50, and 150.00 July.

COTTON

General Comments:  Futures were lower again on what appeared to be long liquidation from speculators and perhaps some farm selling.  Ideas of better production conditions in the US and disappointing economic news from China late last week caused the selling interest to develop once again.  Ideas of better weather in US production.  After the close, USDA showed that conditions in some areas got better while conditions in other areas got worse.  The reports last night could help support prices today.  Texas is reporting dry weather again.  Dry weather is being reported in the Delta and southeast as well.  The weather should help support crop development in the Delta and Southeast, and could help in Texas as some areas of the state saw good rains last week.  Weather for Cotton appears good in India, Pakistan, and China.

Overnight News:  The Delta and Southeast will see some light showers this week.  Temperatures will average above normal.  Texas will get dry weather.  Temperatures will average above normal.  The USDA spot price is now 79.48 ct/lb.  ICE said that certified Cotton stocks are now 0.576 million bales, from 0.574 million yesterday.  ICE said that 1,030 notices were posted today and that total deliveries are now 1,146 contracts.

Chart Trends:  Trends in Cotton are down with no objectives.  Support is at 82.80, 81.80, and 81.20 October, with resistance of 84.60, 85.20, and 86.00 October.

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