Orange juice gains as storm forms in Atlantic

FCOJ

General Comments:  Futures closed higher as a tropical storm formed in the Eastern Atlantic and threatened to become the first hurricane of the year.  The storm is not going to come anywhere close to Florida, but it gave traders a reason to buy, anyway.  The storm shows that the conditions in the Atlantic might be improving.  The historically biggest part of the season is coming up.  There are still no real threats showing in the tropical Atlantic for Florida.  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 normal temperatures and mostly dry weather, but production areas will turn warmer again this weekend. 

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

Chart Trends:  Trends in FCOJ are mixed.  Support is at 134.00, 131.00, and 129.00 November, with resistance at 139.00, 140.00, and 142.00 November.

COTTON

General Comments:  Futures closed higher as traders started to get ready for the USDA reports on Thursday.  Many areas are turning hot and dry again, and this created some buying interest as well.  China issued some positive economic data over the weekend to help demand ideas stay afloat after the stronger than expected export sales report from last week.  US crop development remains behind due to delayed planting this year, but crop conditions right now are generally good.  Weather is warm in the US, with the Delta and the Southeast expecting above normal temperatures into the weekend.  Texas is dry and warm.  Weather for Cotton still appears good in India.  The market is getting ready for the harvest, and any rallies now might be very limited in scope.

Overnight News:  The Delta will be dry and Southeast will see a few showers late in the week.  Temperatures will average above normal in the Delta and mostly above normal in the Southeast.  Temperatures should start to turn cooler this weekend.  Texas will see dry weather.  Temperatures will average above normal.  The USDA spot price is now 80.29 ct/lb.  ICE said that certified Cotton stocks are now 0.018 million bales, from 0.018 million yesterday.  

Chart Trends:  Trends in Cotton are mixed.  Support is at 82.80, 82.30, and 81.80 October, with resistance of 84.20, 85.05, and 85.30 October.

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