COTTON (NYBOT:CTV13)
General Comments: Futures were lower on poor weather around the country. Parts of the Southeast are getting too much rain and Texas growing areas remain mostly hot and dry. However, temperatures turned much cooler in Texas yesterday and rain was reported in central parts of the state. Conditions in Alabama, Mississippi, and Missouri are below average now, but will see warm temperatures and Somme showers this week, with most of the precipitation in Eastern and southern areas. It is possible that futures can continue to work lower as demand has turned soft, but production and weather might be more important in the short term. Weather for Cotton appears good in India, Pakistan, and China.
Overnight News: The Delta and Southeast will see showers and rains through the week, mostly in southern and Eastern areas. Temperatures will average near to above normal. Texas will see some showers early this week and drier weather later this week. Temperatures will average near to below normal today and tomorrow, then will trend to above normal. The USDA spot price is now 80.77 ct/lb. ICE said that certified Cotton stocks are now 0.593 million bales, from 0.606 million yesterday.
Chart Trends: Trends in Cotton are down with objectives of 83.00 October . Support is at 84.00, 83.10, and 82.80 October, with resistance of 85.20, 86.00, and 86.50 October.
FCOJ (NYBOT:OJU13)
General Comments: Futures closed higher as speculators appeared to buy the market. It seemed like a delayed reaction to the USDA reports as weather continues to be good in Florida. The USDA reports showed reduced production of Oranges on Thursday. Production was estimated at 1233.4 million boxes and the yield per box was left unchanged at 1.59 gallons per box. Showers and storms 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. Temperatures are warm in the state, but the precipitation is the key right now. Brazil is seeing near to above normal temperatures and mostly dry weather.
Overnight News: Florida weather forecasts call for showers. Temperatures will average near 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 up with objectives of 145.00 and 155.00 September. Support is at 136.50, 134.00, and 132.00 September, with resistance at 140.00, 143.00, and 145.00 September.
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