DTN Morning Cotton Commentary          05/07 07:52

   Cotton Up Tuesday 

   The cotton market is starting out with a higher Tuesday session.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is starting out with a higher Tuesday session. Traders 
note the market is grossly oversold, as even the once-bullish managed-money 
funds now carry a slightly bearish net-short position. Ahead for the market are 
Thursday's weekly export sales numbers and Friday's monthly crop update.

   Monday, USDA issued its weekly crop progress report. Accordingly, the 2024 
crop stands at 24% planted versus its five-year average of 20% complete.

   Spot May cotton is set to expire Wednesday on the close. To date, some 
400-plus delivery notices have been tendered against that contract. July cotton 
will commence its delivery in seven weeks, on Monday, June 24.

   This Thursday, USDA will issue a fresh round of export sales numbers. Last 
week's net sales were only in double-digits. However, there is talk South 
American cotton could be hurt from copious rains. Such adversity might bring 
some business back to the United States. The data will be out at 8:30 a.m. EDT.

   Friday, USDA will present its monthly supply-demand updates, better known as 
the WASDE. Supposedly, government statisticians will give their initial 
estimates on yield and production levels of the U.S. and world new crops. That 
report will be published at noon, EDT.

   For Tuesday, chart support for July cotton stands at 76.50 cents and 74.85 
cents, with 78.75 and 79.90 as resistance. Tuesday morning's estimated volume 
stands at 6,554 contracts. 

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




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