Cotton Futures were lower again in July

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General Comments: Futures were lower again in July, but a little higher in the other months. The market has been trying to turn trends down, but bulls have been fighting to hold the market and send it higher again. US economic data has been improving, implying that demand might be so bad this year after all, especially with Cotton prices relatively low right now. 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. Big rains are expected in the Delta and Southeast over the weekend, and some areas of the Delta got big rains last weekend to slow down the planting pace. Traders also were looking for new signs of demand, but are not finding much new. 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. Temperatures will average near to above normal. Texas will get mostly dry weather, but showers are possible on Saturday. Temperatures will average mostly above normal. The USDA spot price is now 76.98 ct/lb. ICE said that certified Cotton stocks are now 0.509 million bales, from 0.509 million yesterday.

Chart Trends: Trends in Cotton are down with objectives of 80.90 July. Support is at 81.00, 80.10, and 79.00 July, with resistance of 82.90, 83.60, and 85.00 July.

Source: futuresmag.com

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