General Comments: Futures were a little higher in consolidation trading. Traders expected bullish export sales data from USDA today. China is buying a lot of Cotton from its producers at high prices, and this leaves industry there to import. Most of those imports come from the US. Some traders think that US planted area will increase from the estimates released last week due to more favorable Cotton futures prices and sinking Corn and Soybeans futures prices. Corn and Soybeans futures could show some stability for the short term after the dramatic price action over the last week. Weather will also be watched as more wet weather in the Delta and Southeast could create less interest in Corn and more in Cotton to avoid having Corn pollinate in the hottest time of the year. 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 exports have held up well given the price strength in recent weeks.
Overnight News: The Delta and Southeast will see mostly dry weather except for rain over the next couple of days. Temperatures will average below normal this week and near to above normal this weekend. Texas will get dry weather except for a few showers in northern areas this weekend. Temperatures will average near to above normal by Friday and above normal this weekend. The USDA spot price is now 84.34 ct/lb. ICE said that certified Cotton stocks are now 0.421 million bales, from 0.422 million yesterday. Informa estimated US Cotton planted area at 10.367 million acres. USDA said that net Upland Cotton export sales were 148,300 bales this year and 59,300 bales next year. Net Pima sales were 19,800 bales this year and 4,900 bales next year.
Chart Trends: Trends in Cotton are mixed. Support is at 88.60, 87.10, and 86.20 May, with resistance of 89.80, 90.25, and 90.45 May.