Orange juice higher as traders consider cold weather

FCOJ (NYBOT:OJF14)

General Comments: Futures closed higher in mostly quiet trading. Colder weather should return to the U.S. this weekend and next week, although Florida will not see the extreme cold. The freeze season is not all that far away and there is usually some speculative buying that appears at this time and as soon as the cold air starts to filter in from Canada. Traders are now expecting USDA to lower production even more in coming production reports after the much lower than expected production estimate earlier in the month. The greening disease has affected crops in a bigger way than many in the trade expected. Demand remains weak and there have been no tropical systems to hit the state. Growing and harvest conditions in the state of Florida remain mostly good. Brazil is seeing near to above normal temperatures and dry conditions or a few showers.

Overnight News: Florida weather forecasts call for a few showers this week. Temperatures will average near to above normal.

Chart Trends: Trends in FCOJ are up with objectives of 143.00 January. Support is at 135.00, 131.00, and 130.00 January, with resistance at 140.00, 143.00, and 145.50 January.

COTTON (NYBOT:CTZ13)

General Comments: Futures closed lower as traders waited for the harvest progress estimates from USDA that came out after the close and as they waited for Word on the potential Chinese sales from government reserves. China could begin to sell Cotton from state reserves this week. Ideas are that the sales there would kill demand for imported Cotton, especially from the US, but industry there and in other parts of the world seem to be loading up, anyway as recent export sales reports have been very strong. Scattered showers are in the forecast for late this week in eastern areas, but the crop should remain in good condition as the rains are not expected to be big. It will turn cold this weekend. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas amid dry weather. The Delta and Southeast are reporting generally favorable conditions as well.

Overnight News: The Delta and Southeast will see dry weather early this week and light precipitation late this week. Temperatures will average near to above normal this week and near to below normal this weekend. Texas will see dry conditions through Wednesday and precipitation on Thursday and Friday. Temperatures will average near to above normal this week, but below normal this weekend. The USDA spot price is 73.97 ct/lb. today. ICE said that certified Cotton stocks are now 0.208 million bales, from 0.202 million yesterday. USDA said that Cotton is now 68% harvested, from 56% last week, 82% last year, and 75% average.

Chart Trends: Trends in Cotton are mixed. Support is at 76.30, 75.20, and 74.20 December, with resistance of 77.70, 78.50, and 78.80 December.

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