Printable Page Cotton News   Return to Menu - Page 1 3 4 5 6
 
 
DTN Closing Cotton            04/20 13:36

   Cotton Chugs Sideways

   It seems for the past several sessions the cotton market has been strong 
early (higher prices) but finished weak late (lower prices) in the day.

Keith Brown
DTN Contributing Cotton Analyst

   It seems for the past several sessions the cotton market has been strong 
early (higher prices) but finished weak late (lower prices) in the day. Reasons 
for such seesaw behavior may include the wobbly outside markets, such as the 
Dow, gold, crude and the U.S. dollar. Of course, cotton needs new direct 
positive news for its own influence. That latter opportunity may come this 
Thursday when USDA will issue its weekly export-sales. Currently 2020-21 sales 
are running at 95% of USDA's new target. That new target (15.75 million bales) 
is the latest increase in exports the government just altered in its April crop 
report.        

   The market is also anticipating Monday's notice period for spot May cotton. 
With an open interest of some 14,000 contracts, a lot of squaring of positions 
must be done by Friday's settlement. 

   Also, this Friday the CFTC will issue its commitment of traders. Traders are 
anticipating the report to reflect increased speculative buying from the 
managed-money funds given the market has recently been on a upside tear.   

   COVID-19 cases in India are ramping higher. Our contact there told us that 
the situation in India is getting dire. Possibly the virus could impede the 
planting of the 2021 crop, but more likely the spinning mills in the larger 
cities. Allegedly worldwide COVID has caused the deaths of some 3 million 
people. Historically, however, the Spanish Flu of the early 1900s era killed 
some 55 million people, and there was no international air-travel in those days.

   Tuesday, May cotton closed at 83.77 cents, up 0.51 cent, July settled at 
85.17 cents, up 0.46 cent and December ended at 83.06 cents, up 0.56 cent; 
estimated volume was 23,825 contracts.

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




(c) Copyright 2021 DTN, LLC. All rights reserved.

No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up Free today!
 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN