Orange juice drops on demand woes despite less production


General Comments: Futures closed lower once again. The weather is still good and demand is still bad. There will be less production this year due to greening disease and some unfavorable weather earlier in the year, but has no reason to rally as demand remains mostly on the weak side and there have been no tropical systems to hit the state. Growing conditions in the state of Florida remain mostly good. Dry weather has returned and conditions are said to be very good in almost the entire state. Temperatures are warm. Fruit is reported to be sizing well and of consistent size and trees are reported in good condition. Some early harvest has started. Brazil is seeing near to above normal temperatures and showers.

Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average near to above normal.  

Chart Trends: Trends in FCOJ are mixed. Support is at 116.50, 115.00, and 112.00 November, with resistance at 121.00, 122.50, and 125.00 November.


General Comments: Futures closed lower on demand concerns. Demand is poor at a time of expanding harvest, and for now the market is in search of some export sales. Traders worry that China will not be a big buyer this year as the government there has been buying a lot and might have enough. However that has been true in past years but the private mills bought here, anyway. The private buyers will not have to buy just from the US as there appear to be increasing supplies available from other origins like India and Pakistan. Good weather in US productions areas should be replaced by scattered showers over the middle of the week, but the crop should remain in good condition as the rains are not expected to be big. Traders should get more reports on demand this week. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas. The Delta and Southeast are reporting generally favorable conditions as well. Trends are mostly down on the charts.

Overnight News: The Delta and Southeast will see rain develop at midweek, then dry weather again by the end of the week. Temperatures will average near to above normal. Texas will see dry weather, but a few showers are possible tomorrow. Temperatures will average near to above normal. The USDA spot price is 76.00 ct/lb. today. ICE said that certified Cotton stocks are now 0.134 million bales, from 0.114 million yesterday.

Chart Trends: Trends in Cotton are down with no objectives. Support is at 78.30, 77.40, and 76.80 December, with resistance of 79.75, 80.10, and 81.20 December.

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