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DTN Morning Cotton Commentary 04/21 07:13
Cotton Suffers Small Retreat
After a stupendous Monday, the cotton market is easing off Tuesday morning.
Keith Brown
DTN Contributing Cotton Analyst
After a stupendous Monday, the cotton market is easing off Tuesday morning.
Although new contract highs were posted Monday for several trading months, the
volume of near 60,000 was somewhat uninspiring. Nonetheless, the trend is up,
the production fields are inordinately dry, and certain speculators are now
leaning long.
USDA's weekly Crop Progress report showed 11% of the U.S. 2026 crop was
planted. That number was 7% the previous week and 10% a year ago. The five-year
average for this date is 10%. Texas was 16% planted, up from 11% last week and
15% a year ago. The five-year average is 16%. Georgia was 3% planted, up from
1% last week and the same as a year ago. The five-year average is 3%.
The commodities and financial worlds are holding their collective breaths
this morning awaiting whether the U.S. and Iran will hold peace talks.
Supposedly, Vice President JD Vance is leading the U.S. delegation, but Iranian
rhetoric has thus far been defiant. Meanwhile, the U.S. has renewed threats of
overwhelming military action against Iran, if no agreement is reached before
the fragile ceasefire expires Tuesday evening.
First notice day for the May contract is April 24. Its delivery period runs
through May 6.
Chart support for July cotton stands at 78.70 cents and 77.80 cents, with
resistance around 81.00 cents and 81.50 cents. Tuesday morning's estimated
volume is 13,567 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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