General Comments: Futures were higher on new speculator buying. Bears point to increasing certified stocks levels for reasons to be bearish. Demand bulls noted positive economic data in general and ideas of reduced planted area in the US this season as reasons to buy. The current low new crop 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. Texas areas could get some significant precipitation in the next day or two. Delta and Southeast areas will see some significant precipitation late in the week. Ideas are that the market can continue to work higher overall.
Overnight News: The Delta and Southeast will see showers and rain on Friday, and the Southeast could see precipitation through the weekend. Temperatures will be variable in the Delta and will average near to above normal in the Southeast. Texas will get dry weather after precipitation ends today. Temperatures will average near to above normal. The USDA spot price is now 78.01 ct/lb. ICE said that certified Cotton stocks are now 0.307 million bales, from 0.288 million yesterday. USDA estimated Cotton production this year at 14.0 million bales on planted area of 9.8 million acres. The average farm price is estimated at 73.00 cents per pound for the new crop.
Chart Trends: Trends in Cotton are mixed to up with objectives of 91.00 March. Support is at 81.70, 80.55, and 80.20 March, with resistance of 83.40, 84.00, and 85.30 March.