General Comments: Futures were lower in response to the USDA reports that showed plenty of cotton was being planted. However, futures held the short term range and gave no clue to the next short term move. It is possible that futures can work lower again as demand has turned soft. Ideas of better production conditions in the US caused some selling interest. Texas is reporting light precipitation, mostly in southern areas. Dry weather is being reported in the Delta and showers and storms are seen in the Southeast. The weather should help support crop development in the Delta and Southeast, and could help in Texas. Weather for Cotton appears good in India, Pakistan, and China.
Overnight News: The Delta should be dry and Southeast will see showers and rains. Temperatures will average near to below normal. Texas will get a few showers early this week, but will be mostly dry. Temperatures will average near to below normal. The USDA spot price is now 81.26 ct/lb. ICE said that certified Cotton stocks are now 0.612 million bales, from 0.596 million yesterday. ICE said that 38 notices were posted today and that total deliveries are now 1,560 contracts.
Chart Trends: Trends in Cotton are mixed to down with no objectives. Support is at 85.10, 84.00, and 82.80 October, with resistance of 86.40, 86.90, and 88.00 October.
General Comments: Futures closed a little higher in consolidation trading. More buying was seen in July as traders get out of positions before First Notice Day today. 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. 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. ICE said that 0 delivery notices were posted today and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are down with no objectives. Support is at 125.00, 122.50, and 121.50 September, with resistance at 130.00, 131.50, and 132.50 September.
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