General Comments: Futures were higher again yesterday on reports of tight domestic and world cash markets. Demand is still said to be strong, but some buyers are backing away from the market after the rally in prices. New export demand data will be released tomorrow by USDA. The rally is coming at a time when certified stocks are building as well. The current low new crop prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year. Some producers in the Delta are noting the recent price rally and might decide to plant more Cotton 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. The plantings intentions report will be released at the end of the month.
Overnight News: The Delta and Southeast will see dry conditions. Temperatures will average mostly below normal early this week and then near to above normal, with warmest readings in the Delta. Texas will get dry weather. Temperatures will average above normal. The USDA spot price is now 83.26 ct/lb. ICE said that certified Cotton stocks are now 0.426 million bales, from 0.424 million yesterday. ICE said that 0 contracts were delivered yesterday and that total deliveries for the month are 1,542 contracts. USDA said that net Upland Cotton export sales were 187,600 bales this year and40,500 bales next year. Net Pima sales were 44,900 bales this year and 9,800 bales next year.
Chart Trends: Trends in Cotton are up with objectives of 90.80 and 93.90 May. Support is at 88.80, 86.10, and 85.80 May, with resistance of 89.20, 90.00, and 90.70 May.