General Comments: Futures closed higher on follow-through buying from the higher than expected export sales for the previous week. There are chances that the improved demand can continue, but many will be willing to sell if the sales drop this week. Traders say that there is good demand at the chart support areas under the current price area as mills here and in other parts of the world need to get some coverage. China is the number one buyer of U.S. Cotton, but others could be using the recent price weakness to gain coverage while China has been buying in smaller quantities. The U.S. economy is improving slowly and should support increases in demand over time as people start to buy clothes again. Brazil conditions are reported to be very good in Bahia with light precipitation and warm temperatures.
Overnight News: The Delta and Southeast will see dry conditions. Temperatures will average below normal. Texas will see dry conditions. Temperatures will average above normal. The USDA spot price is 83.18 ct/lb. today. ICE said that certified Cotton stocks are now 0.050 million bales, from 0.049 million yesterday. China imported 608,579 tons of Cotton in December, up 14.4% from last year.
Chart Trends: Trends in Cotton are up with objectives of 8750 and 9000 March. Support is at 85.50, 85.00, and 84.00 March, with resistance of 87.60, 88.00, and 89.00 March.
General Comments: Futures closed a little higher in consolidation trading. The weather forecasts show moderate temperatures for the next week. Florida is harvesting a very small crop of oranges with good weather because of disease problems with the greening disease. The greening disease could cause reduced production for the next few years. Growing and harvest conditions in the state of Florida remain mostly good, with mostly dry and warm conditions. Irrigation water is available and is being used. Harvest remains active for early and mid-oranges, but fruit sizes are reported to be small. Brazil is seeing near to above normal temperatures and scattered showers late in the week.
Overnight News: Florida weather forecasts call for mostly dry conditions. Temperatures will average near to below normal.
Chart Trends: Trends in FCOJ are mixed. Support is at 139.00, 137.00, and 135.00 March, with resistance at 144.00, 146.00, and 147.00 March.