Cotton futures were mixed

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General Comments: Futures were mixed. Trends remain up as traders contemplate less planted area next year and strong export sales. Export sales have been strong for the last month to six weeks, and strong sales are expected to continue after another failed Chinese government auction held over the weekend. However, the export sales report was not bullish yesterday as the demand was down from previous reports. The report showed that China had cancelled some of its recent purchases. The current low prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year. Some are wondering if planted area might be lower this year here in the US due to weak prices against competing crops. The area lost would go mostly to Corn and Soybeans. Current weather featured some precipitation in Delta and Southeast areas, but western Texas was mostly dry. Delta and Southeast areas will turn dry starting today. Ideas are that the market can continue to work higher overall.

Overnight News: The Delta and Southeast will see mostly dry conditions. Temperatures will average near to above normal. Texas will get dry weather. Temperatures will average much above normal. The USDA spot price is now 77.43 ct/lb. ICE said that certified Cotton stocks are now 0.127 million bales, from 0.127 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 9100 March. Support is at 82.10, 81.40, and 80.20 March, with resistance of 84.00, 85.25, and 87.00 March.

Source: futuresmag.com

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