Cotton Futures were lower as traders concentrated once again on world supply

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General Comments:  Futures were lower as traders concentrated once again on world supply and demand estimates that showed ample supplies instead of the projected tight US market conditions.  The US estimates should help support higher prices in the long run.  The market was also weak on forecasts for warm and dry weather in many US production areas that will promote active planting by farmers this week.  Ideas are that the demand can continue for now as China moves to increase its stocks and as private buyers there reject offers from the government due to quality and price.  Planting conditions for the next crop remain a problem in the US.  Dry weather is forecast for the Delta and Southeast, and much warmer weather is expected in Texas this week.  So far, planting of all crops is slow, but ideas are that farmers can get a lot of planting done with dry and warm conditions.  Short term trends are mixed.

Overnight News:  The Delta and Southeast will see dry conditions.  Temperatures will average near to above normal.  Texas will get mostly dry weather.  Temperatures will average mostly above normal.  The USDA spot price is now 81.03 ct/lb.  ICE said that certified Cotton stocks are now 0.504 million bales, from 0.499 million yesterday.

Chart Trends:  Trends in Cotton are mixed to down with objectives of 8280 and 8090 July.  Support is at 85.40, 85.00, and 83.00 July, with resistance of 86.60, 87.60, and 88.50 July.

Source: futuresmag.com

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