Cotton Futures were lower in July


General Comments:  Futures were lower in July, but higher in the new crop months.  The rally in new crop months came on forecasts for some storms to develop next week in the Delta and Southeast and also on the rally in Chicago. The weather has improved in all areas with some precipitation in Texas areas and drier weather in the forecast for the next few days 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.  Planting conditions for the next crop remain a problem in the US.  Dry weather is forecast for the Delta and Southeast, and warm weather is expected in Texas this week.  Ideas are that farmers can get a lot of planting done with dry and warm conditions.

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 78.62 ct/lb.  ICE said that certified Cotton stocks are now 0.509 million bales, from 0.509 million yesterday.  USDA said that net Upland Cotton export sales were 101,700 bales this year and 36,400 bales next year.  Net Pima sales are 5,400 bales this year and 0 bales next year.

Chart Trends:  Trends in Cotton are down with objectives of 83,20, 82.80, and 81.30 July.  Support is at 82.90, 82.20, and 81.70 July, with resistance of 85.00, 85.40, and 87.10 July.