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DTN Morning Cotton Commentary 04/24 08:09
Cotton Bobs for a Low?
After April's price implosion, the cotton market is attempting to affect a
possible halt.
Keith Brown
DTN Contributing Cotton Analyst
After April's price implosion, the cotton market is attempting to affect a
possible halt. The market has become grossly oversold, and in that process, has
liquidated a major portion of speculator's net long positions.
There were 23 delivery notices issued against spot May Contract. The issuing
sources were JP Morgan with 15, Macquarie Futures, 5, and StoneX, 3. The lone
stopper was SG Americas. The May contract expires on May 8.
On Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales. Last
week's business showed that current season net sales were 146,100, up 79%,
while shipments were 266,700, down 3% weekly.
Crude oil seems to be stalled at about the $83 mark. Traders are waiting for
the latest U.S. inventory data Thursday. They hope the market's focus will
shift back to normal supply and demand fundamentals; however, the U.S. Senate
passed a foreign aid package, including expanding sanctions against Iranian oil.
For Wednesday, chart support for July cotton stands at 80.50 cents and 80.10
cents, with 83.10 cents and 83.90 cents as resistance. Wednesday morning's
estimated volume stands at 5,272 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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