Cotton Futures were lower on speculative selling tied to weak chart patterns


General Comments:  Futures were lower on speculative selling tied to weak chart patterns and also on good planting conditions here in the US.  The weather has improved in all areas with some precipitation in Texas areas and drier weather in the forecast for the Delta and Southeast.  Traders also were looking for new signs of demand, but were not finding much.  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 U.S.  Dry weather is forecast for the Delta and Southeast, and much warmer weather is expected in Texas this week.  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 or afternoon showers.  Showers and storms could last through tomorrow.  Temperatures will average near to above normal.  Texas will get mostly dry weather, but showers are possible on Friday.  Temperatures will average mostly above normal.  The USDA spot price is now 79.01 ct/lb.  ICE said that certified Cotton stocks are now 0.509 million bales, from 0.506 million yesterday.

Chart Trends:  Trends in Cotton are down with objectives of 83,209, 82.80, and 81.30 July.  Support is at 83.60, 82.90, and 82.20 July, with resistance of 85.00, 85.40, and 87.10 July.