Cotton higher on forecasts for dry weather

COTTON (NYBOT:CTV13)

General Comments: Futures moved higher on some forecasts for dry weather to return this week to Texas, but held the recent trading range on reports of improved conditions in Texas. Temperatures are warmer again in Texas and rain was reported in central and western parts of the state, including key Cotton producing areas last week. The rains there are called very beneficial. Conditions in Alabama, Mississippi, and Missouri are below average now, but will see warm temperatures and some showers this week as temperatures turn somewhat cooler. It is possible that futures can continue to work lower over time as demand has turned soft and as the weather is getting better in almost all US production areas. However, follow through buying is possible early this week. Weather for Cotton still appears good in India, Pakistan, and China.

Overnight News: The Delta and Southeast will see showers off and on all week. Temperatures will average near to above normal. Texas will see drier weather this week. Temperatures will average near to above normal. The USDA spot price is now 82.34 ct/lb. ICE said that certified Cotton stocks are now 0.447 million bales, from 0.468 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 87.50, 89.60, and 92.50 October. Support is at 85.50, 85.20, and 84.30 October, with resistance of 86.50, 87.00, and 87.50 October.

FCOJ (NYBOT:OJU13)

General Comments: Futures closed a little higher in quiet and range bound trading. 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 mixed to up with objectives of 155.00 September. Support is at 140.00, 136.50, and 134.00 September, with resistance at 146.00, 147.00, and 149.00 September.

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