Orange juice retreats as storm risk evaporates

FCOJ (NYBOT:OJX13)

General Comments: Futures closed lower as tropical storms seen in the Atlantic and the Gulf of Mexico showed no signs of moving to Florida. The historical peak of the season has just passed. There are still no real threats showing in the tropical Atlantic for Florida as these storms move away and nothing else seems to be forming right now. 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.

Overnight News: Florida weather forecasts call for some showers. Temperatures will average near normal. Nielsen said that Orange Juice sales were 39.4 million gallons in the four week period ending August 31, up 1.9% from the previous period.

Chart Trends: Trends in FCOJ are mixed. Support is at 134.00, 131.00, and 129.00 November, with resistance at 139.00, 142.00, and 143.00 November.

COTTON (NYBOT:CTV13)

General Comments: Futures closed lower on demand concerns. The USDA reports gave no reason for concern for tight supplies in the coming year. The conditions here are mostly good, and the harvest is starting in some areas. US crop development remains behind due to delayed planting this year, but crop conditions right now are generally good with moderating temperatures and rains in the forecast for Texas this week and dry weather in the forecast for the Delta and Southeast. The weather forecasts and the crop progress and condition reports offer no concerns for production at this time. Weather for Cotton still appears good in India and Pakistan, and harvest should be starting there. Cotton in China is seeing rain that could hurt quality.

Overnight News: The Delta will be dry and Southeast will see dry weather. 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 scattered showers today and again at the end of the week. Temperatures will average above normal. The USDA spot price is now 81.50 ct/lb. ICE said that certified Cotton stocks are now 0.015 million bales, from 0.015 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 83.55, 82.95, and 82.45 December, with resistance of 85.15, 85.55, and 86.25 December.

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