Cotton falls as rain reported in key producing areas

COTTON (NYBOT:CTV13)

General Comments: Futures moved lower on reports of rain in Texas. Temperatures are much cooler in Texas and rain was reported in central and western parts of the state, including key cotton producing areas. The rains there are called very beneficial. Some showers are possible in the next couple of days. Conditions in Alabama, Mississippi, and Missouri are below average now, but will see warm temperatures and some showers this week, with most of the precipitation in eastern and southern areas. Some rain and cooler temperatures are possible this weekend. It is possible that futures can continue to work lower as demand has turned soft and as the weather is getting better in almost all US production areas. Weather for Cotton appears good in India, Pakistan, and China.

Overnight News: The Delta and Southeast will see showers and storms develop this weekend. Temperatures will average near to above normal. Texas will see drier weather this week and this weekend. Temperatures will average near to above normal. The USDA spot price is now 79.80 ct/lb. ICE said that certified Cotton stocks are now 0.518 million bales, from 0.540 million yesterday. USDA said that net Upland Cotton export sales were 50,400 bales this year and 40,100 bales next year. Net Pima sales were 4,800 bales this year and 5,300 bales next year.

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 85.50, 86.00, and 86.50 October.

FCOJ (NYBOT:OJU13)

General Comments: Futures closed higher and made new highs for the move. Some more buying is possible this week. There is not much new surrounding the FCOJ market these days, and the tropics remain quiet for now. Growing conditions in the state of Florida remain mostly good. 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. The tropics appear quiet and there are no storms in view. Brazil is seeing near to above normal temperatures and mostly dry weather, and there are reports of stress to trees and the potential for lower production. It could turn cold in some production areas early next week.

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

Chart Trends: Trends in FCOJ are up with objectives of 145.00 and 155.00 September. Support is at 140.00, 136.50, and 134.00 September, with resistance at 145.00, 147.00, and 149.00 September.

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