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DTN Morning Cotton Commentary 05/06 08:12
Cotton Continues to Unravel
The cotton market is lower Monday, unable to find friendly footing.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is lower Monday, unable to find friendly footing. The
immediate difference for the trade is that currently the funds are net short.
Additionally, traders will see new planting progress numbers, fresh export
sales, and updated supply-demand tables.
Last Friday afternoon, the CFTC updated its Commitments of Traders report.
The data revealed the managed-money funds sold 11,435 contracts, establishing a
new net-short position of 1,934 contracts. It is the first time the funds have
been short since early January.
Monday afternoon at 4 p.m. EDT, USDA will issue the latest planting progress
pace for the 2024 crop. Estimates suggest the crop will approach 25% planted.
On Friday, USDA will present its monthly supply-demand updates, better known
as the WASDE. Supposedly, government statisticians will give their initial
estimates on yield and production levels of the U.S. and world new crops.
For Monday, chart support for July cotton stands at 75.00 cents and 74.30
cents, with 79.80 and 79.40 as resistance. Monday morning's estimated volume
stands at 11,340 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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