Cotton works higher but demand turning soft

COTTON (NYBOT:CTV13)

General Comments: Futures were higher on follow-through buying. It was a low volume session with the holiday yesterday, and today could be a low volume session as well. Futures held the short term range. It is possible that futures can work lower again as demand has turned soft. Ideas of better production conditions in the U.S. 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 above normal. Texas will be mostly dry. Temperatures will average above normal. The USDA spot price is now 82.78 ct/lb. ICE said that certified Cotton stocks are now 0.602 million bales, from 0.597 million yesterday. ICE said that 53 notices were posted today and that total deliveries are now 2,515 contracts.

Chart Trends: Trends in Cotton are mixed . Support is at 86.20, 85.20, and 84.00 October, with resistance of 88.00, 88.20, and 89.70 October.

FCOJ (NYBOT:OJU13)

General Comments: Futures closed higher for one more day. There has been little selling pressure on the market since the dramatic move lower, but some may develop son as futures are closer to resistance areas. Better weather in Florida seems to be the big problem for the bulls at this time. Showers are reported 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. Brazil is seeing near to above normal temperatures and mostly dry weather, but showers are possible later this 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 mixed. Support is at 130.00, 125.00, and 122.50 September, with resistance at 135.00, 138.00, and 139.00 September.

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