DTN Morning Cotton Commentary          04/26 07:58

   Cotton Tries to Dig In

   After its long April retreat, the cotton market is attempting to make a 
technical stand.

Keith Brown
DTN Contributing Cotton Analyst

   After its long April retreat, the cotton market is attempting to make a 
technical stand. By many measurements the market is indeed technically 
oversold, and as it is Friday, it is a likely time for profit-taking to emerge 
and somewhat rally prices. Traders are digesting Friday's PCE inflation 
readings, and due out Friday afternoon is the Commitment-of-Traders update from 
CFTC. 

   The Commerce Department reported today that the Personal Consumption 
Expenditures Price Index, excluding food and energy, increased 2.8% from a year 
ago for March. That number was above the 2.7% estimate. The PCE is reportedly a 
closely watched indicator by Federal Reserve policymakers.

   Friday afternoon at 3:30 p.m. EDT, CFTC will update the status of the 
managed-money funds. Last week saw that speculative group had liquidated some 
26,000 contracts, reducing their net long position to roughly 36,000 contracts. 

   There were 147 notices tendered against the spot May contract. That brings 
total deliveries to some 210 contracts. The May contract expires on May 8.

   For Friday, chart support for July cotton stands at 83.60 cents and 79.80 
cents, with 82.20 cents and 83.00 cents as resistance. Friday morning's 
estimated volume stands at 3,863 contracts. 

   Keith Brown can be reached at commodityconsults@gmail.comor by calling (229) 
890-7780.




(c) Copyright 2024 DTN, LLC. All rights reserved.