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DTN Morning Cotton Commentary 05/05 07:14
Cotton Market Counters Monday
The cotton market is somewhat higher today in direct opposition to its
weakness on Monday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is somewhat higher today in direct opposition to its
weakness on Monday. Traders still continue to "obey the trend," meaning that
small dips are being bought. Yet, participants are also awaiting next week's
supply-demand update, and the outcome of the Trump/Xi trade meeting.
USDA issued its weekly Crop Progress report Monday. Its data showed that 21%
of the 2026 crop was planted, up from 16% the previous week and 20% a year ago.
The five-year average for this date is 19%. Texas was 24% planted versus a
five-year average of 22%. Georgia was 11% planted versus 14% on average,
Arkansas was 25% versus 17% on average, and Mississippi was 30% planted versus
17% on average. The Delta crops are ahead of schedule.
The U.S. dollar remains steady to firm today as the ceasefire with Iran is
becoming quite shaky. For the past two days, Iran has launched new attacks on
ships in the Strait of Hormuz as well as neighboring countries. The U.S. is
maintaining its blockade of the country as well as continuing to open the
waterway.
Spot May contract saw 123 notices issued today. The issuer was BNP while the
stoppers included Macquarie, SG Americas and Wells Fargo. Thus far, 301 notices
have been issued. May's delivery period runs through Wednesday, May 6.
Chart support for July cotton stands at 81.50 cents and 81.00 cents, with
resistance around 85.00 cents and 85.50 cents. Tuesday morning's estimated
volume is 11,085 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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