Orange juice drops as markets fend off cold weather


General Comments: Futures closed lower as the weather in Florida remains generally very good. There is usually some speculative buying that appears at this time and as soon as the cold air starts to filter in from Canada, and cold air is coming again at the end of the week. Current above normal readings in northern areas will be replaced by much below temperatures this weekend. No one is predicting any freezing temperatures for Florida. Traders are expecting USDA to lower production even more in coming production reports. The greening disease has affected crops in a big way and could cause reduced production for the next few years. Growing and harvest conditions in the state of Florida remain mostly good. It has turned drier, which is seasonal, and reports indicate that crops are in good condition. Irrigation water is available. Harvest is increasing. Brazil is seeing near to above normal temperatures and showers.

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

Chart Trends: Trends in FCOJ are mixed. Support is at 137.00, 135.00, and 131.00 January, with resistance at 141.00, 143.00, and 145.50 January.


General Comments: Futures closed lower. Prices remain in a trading range, and it seems like the market wants some demand news. Prices are still getting support from the storm that hit the production areas last week. Quality has suffered with the storm, and there is potential for some yield loss as well. There are questions about demand in China as the government there has offered its supplies into the domestic market. It sold half of its offer at the auction last week and will most likely offer more soon. Wire reports indicate that some production has been lost in China after recent bad weather in some growing areas. Brazil conditions are reported to be very good in Bahia. Harvest continues this week in the US, but should get interrupted again late in the week when the cold and snow and rain arrives.

Overnight News: The Delta and Southeast should see dry weather through the middle of the week, then some showers and snow late in the week. Temperatures will average near to above normal early in the week, then near to below normal. Texas will see dry conditions early in the week and rain and snow at the end of the week. Temperatures will average above normal early in the week, then below normal. The USDA spot price is 74.94 ct/lb. today. ICE said that certified Cotton stocks are now 0.237 million bales, from 0.237 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 78.00, 77.40, and 76.65 March, with resistance of 79.65, 80.50, and 80.95 March.

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