Cotton was higher in nearby months, but lower in deferred months. The price action overall has not been real strong, but Bulls seem unwilling to give up. Ideas of short domestic supplies available to the market supported nearby months. Demand is a problem as the market has seen selling due to reduced prices for Chinese government supplies and ideas that Chinese imports could be sharply curtailed in the coming months. The government is releasing some of its supplies to millers at competitive prices when compared to imports. The move by the Chinese government comes as the United States will plant more Cotton. China is the top destination for US exports. Brazil conditions are reported to be good in Bahia with warm temperatures and a few showers. India might have some production problems this year as El Nino is developing and might bring less monsoon rains to the country. Warmer temperatures are returning to production areas in the US and there has been some fieldwork done, at least in the Delta and Southeast. It is turning warmer and drier in the Delta and Southeast. The Texas Panhandle should be mostly dry through this week and needs some rain.
Overnight News: Delta and Southeast areas will get some drier weather after some big rains today. Temperatures will average near to above normal. Texas will see mostly dry weather. Temperatures will average near to below normal. The USDA spot price is 85.26 ct/lb. today. ICE said that certified Cotton stocks are now 0.275 million bales, from 0.274 million yesterday. USDA said that Cotton is now 8% planted, from 6% last week, 8% last year, and 9% average.
Chart Trends: Trends in Cotton are mixed. Support is at 90.00, 88.60, and 88.00 May, with resistance of 91.70, 92.40, and 93.20 May.
– Futures Mag