Cotton Futures were mostly a little higher yesterday

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General Comments: Futures were mostly a little higher yesterday after trading both sides of unchanged. The market has already rallied a lot and now seems to be forming a congestion area. A sideways to lower trade could develop until the end of the month. Demand ideas remain strong overall based on the strong export paces seen in the USDA reports in recent weeks and on reports of tight domestic and world cash markets. Demand is still said to be strong, and sales for export have held up well given the price strength in recent weeks. The rally is coming at a time when certified stocks are building as well, although the overall certified stocks remain low. The current rally in new crop prices are bringing into question what farmers will plant this year. Some producers in the Delta are noting the recent price rally and might decide to plant more Cotton this year. The plantings intentions report will be released at the end of the month. Indian corporate executives told wire services yesterday that the country might need to import much more Cotton than normal as the government keeps buying from producers but then holds on to the stocks.

Overnight News: The Delta and Southeast will see dry conditions until precipitation develops Friday and this weekend. Temperatures will average near to below normal, then turn warmer this weekend. Texas will get dry weather. Temperatures will average near to above normal this week and near to below normal this weekend. The USDA spot price is now 85.84 ct/lb. ICE said that certified Cotton stocks are now 0.421 million bales, from 0.420 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 93.90 May. Support is at 89.80, 88.80, and 87.60 May, with resistance of 91.60, 92.60, and 93.90 May.

Source: futuresmag.com

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