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DTN Morning Cotton Commentary 05/03 07:42
Cotton Tries to Regain Consciousness
Supremely oversold on a Friday, the cotton market is trying to slightly open
its eyes.
Keith Brown
DTN Contributing Cotton Analyst
Supremely oversold on a Friday, the cotton market is trying to slightly open
its eyes. The tragedy of imploding some 2800 points in slightly over one month
has left the market in shambles. Friday, traders will embrace new jobs data, as
well as a CFTC update.
The Labor Department issued its monthly jobs report for April this morning.
Expectations called for 243,000 new non-farm payrolls but the number was a mere
175,000 jobs. Such a number will be viewed as non-inflationary.
Friday afternoon, CFTC will update its Commitment-of-Traders Report. The net
change of the managed-money funds will be keenly watched. Last week's report
revealed that the group had sold over 26,000 contracts, reducing their net long
position to 9,501 contracts.
On Monday, USDA will present the latest planting progress pace for the 2024
crop. Estimates suggest the crop will approach 25% planted.
For Friday, chart support for July cotton stands at 74.20 cents and 73.75
cents, with 78.50 cents and 79.00 cents as resistance. This morning's estimated
volume stands at 12,760 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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