Cotton Futures closed higher, but stayed in the recent trading range

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General Comments: Futures closed higher, but stayed in the recent trading range. Prices are still getting support from the storm that hit the production areas last week. Quality has suffered with the storm, and there is potential for some yield loss as well. There are questions about demand in China as the government there has offered its supplies into the domestic market. It sold half of its offer at the auction last week and will most likely offer more soon. Wire reports indicate that some production has been lost in China after recent bad weather in some growing areas. Brazil conditions are reported to be very good in Bahia. Harvest continues this week in the US, but should get interrupted again late in the week when the cold and snow and rain arrives.

Overnight News: The Delta and Southeast should see some showers and snow late in the week and through the weekend. Temperatures will average below normal. Texas will see rain and snow for the next couple of days, then dry conditions. Temperatures will average much below normal. The USDA spot price is 75.50 ct/lb. today. ICE said that certified Cotton stocks are now 0.206 million bales, from 0.225 million yesterday. USDA said that net Uplad Cotton export sales were 248,600 bales this year and 0 bales next year. Net Pima sales were 5,200 bales this year and 0 bales next year.

Chart Trends: Trends in Cotton are mixed. Support is at 78.00, 77.40, and 76.65 March, with resistance of 79.65, 80.50, and 80.95 March.

Source: Futures Mag

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