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DTN Morning Cotton Commentary 04/22 07:47
Can Cotton Fill the Vacuum?
After its near-month-long vicious decline, the cotton market is attempting
to recover higher Monday.
Keith Brown
DTN Contributing Cotton Analyst
After its near-month-long vicious decline, the cotton market is attempting
to recover higher Monday. No doubt April's 1400 point takedown forced many
speculators and growers to abandon their proverbial ships, creating an overhead
technical void.
Last Friday, the CFTC updated its Commitments of Traders report. From its
tabulations, the agency showed as of Tuesday's close the managed-money funds
liquidated some 26,000 contracts, reducing their net-long position to 36,142
contracts.
Monday afternoon at 4 p.m. EDT USDA will report on the planting progress of
the 20224 crop. Last week, the numbers showed the crop was right at 8% planted.
The 6- to 10-day forecast shows temperatures are expected to be above to
much-above normal for the U.S. Cotton Belt. Rainfall is pegged to be above
normal for Texas and normal for the U.S. Delta and Southeast.
Crude oil is lower Monday after Iran said she will not escalate the conflict
with Israel. The Iranian Foreign Minister said at a news conference that the
Islamic Republic does not plan to respond to Israel's retaliatory strike
launched Friday.
For Monday, chart support for July cotton stands at 81.00 cents and 79.70,
with 83.40 and 86.20 as resistance. Monday morning's estimated volume stands at
15,525 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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