General Comments: Futures closed lower again as the weather remains mostly good in Florida and as there do not seem to be any tropical storms coming anytime soon. It was mostly a quiet session. The most active part of the hurricane season is here, but there are no storms on the horizon. The bulk of the tropical Atlantic is seeing some very dry conditions and wind shear to prevent tropical storm development. Growing conditions in the state of Florida remain mostly good. Showers are reported and conditions are said to be very good in almost the entire state. 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, but mostly dry conditions. Temperatures will average above normal this week and near to below normal this weekend.
Chart Trends: Trends in FCOJ are down with no objectives. Support is at 130.00, 125.00, and 124.00 September, with resistance at 133.00, 135.00, and 137.00 September.
General Comments: Futures closed higher after USDA showed less than expected production estimates in its reports yesterday. Cotton production was estimated at 13.052 million bales, well below trade estimates. Ending stocks estimates were cut slightly for the US and more significantly for the world. Some follow through buying was tied to reports of very hot weather conditions in Chinese production areas and the weather in Corron areas is not really improving right now in that country. China buys a lot of US Cotton and might need to buy more if production there is hurt. US crops remain behind the normal pace. The poor planting conditions early in the year have made the crop progress behind normal. Texas is dry, but will turn cooler later in the week. Conditions in Alabama, Mississippi, and Missouri are good after some big rains earlier in the growing season and rains in recent days as well. Export sales have been on the weak side lately as the buy side of the market waits for prices to work lower. World production ideas are also high. Weather for Cotton still appears good in India.
Overnight News: The Delta and Southeast will see mostly dry weather today and tomorrow and showers this weekend. Temperatures will average near to above normal. Texas will see dry weather this week and maybe a shower in the north. Temperatures will average above normal. The USDA spot price is now 84.96 ct/lb. ICE said that certified Cotton stocks are now 0.051 million bales, from 0.051 million yesterday.
Chart Trends: Trends in Cotton are up with objectives of 89.60 and 92.80 October. Support is at 87.80, 87.45, and 87.00 October, with resistance of 89.65, 90.10, and 90.70 October.
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