Cotton falls on demand destruction worries


General Comments: Futures moved lower as traders worry about demand, especially from China. Ideas are that conditions have improved overall in the last week and will be reflected in the USDA reports tonight. 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 better and these states will see some showers this week as temperatures turn somewhat cooler later in the week. 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. 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 dry weather this week and maybe some showers in the north. Temperatures will average near to above normal. The USDA spot price is now 81.23 ct/lb. ICE said that certified Cotton stocks are now 0.152 million bales, from 0.160 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 85.10, 84.30, and 84.00 October, with resistance of 86.50, 87.00, and 87.50 October.


General Comments: Futures closed lower. 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. 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.

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

Chart Trends: Trends in FCOJ are mixed. Support is at 141.50, 140.00, and 139.00 September, with resistance at 147.00, 148.00, and 149.00 September.

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