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DTN Morning Cotton Commentary 04/01 07:22
Cotton Falls in Afterthought
Despite some disbelief surrounding USDA's Prospective Planting report of
Tuesday, overnight the market is spilling.
Keith Brown
DTN Contributing Cotton Analyst
Despite some disbelief surrounding USDA's Prospective Planting report of
Tuesday, overnight the market is spilling. Apparently, the unexpected high
acres number is causing some traders and hedgers to rethink their market
positions.
Tuesday's USDA Prospective Plantings report showed U.S. 2026 cotton planted
acres at 9.640 million. This was not only above the average expectation from a
pre-report guess of 9.229 million acres, but above the high end of the range of
expectations of 9.000 million to 9.635 million.
Financial markets are high Wednesday following remarks from President Trump
in which said he expects the U.S. military forces will leave Iran in a week or
two. Those comments also have WTI oil under $100 per barrel Wednesday morning.
Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales report.
Previously, net combined seasonal sales were 230,000 bales, far below the
recent pace of 300,000-plus. However, exports were 400,600 bales, which was
another marketing-year high on shipments.
All U.S. markets will be closed this Friday for the Good Friday/Easter
holiday.
Chart support for July cotton stands at 70.60 cents and 70.00 cents, with
resistance around 72.80 cents and 73.10 cents. Wednesday morning's estimated
volume is 30,730 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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