Tuesday, March 31, 2020  
 
 
 
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DTN Closing Cotton            03/31 14:01

   Cotton Up Despite Bearish Data 

   The cotton market finished slightly higher Tuesday despite what was taken as 
bearish planting intentions from USDA.

By Keith Brown
DTN Cotton Correspondent

   The cotton market finished slightly higher Tuesday despite what was taken as 
bearish planting intentions from USDA. For some time now, as prices cascading 
down due to the fallout from the coronavirus, it was widely believed 2020 acres 
would come in dramatically lower. However, USDA indicated only a reduction of 
100,000 acres from the 2019 intentions. Thus, the report was taken initially as 
bearish. However, end-of-the-month and end-of-the-quarter position squaring 
brought prices back to better settlements. 

   Wednesday commences a new trading month, so it will be interesting to see if 
willing sellers reemerge. The next event for the cotton market will be 
Thursday's exports-sales report. Of late sales and shipments have been strong, 
bur fears of foreign mill closures have initiate some cancellations. 

   Technically, the market is hugely oversold, as speculators are maintaining 
net short position. However, such beaten-down levels are no automatic buy 
signals. If anything, a wounded market often results in additional sellers 
piling on harder.

   For Tuesday, May cotton closed at 51.13 cents, up 0.43 cent, July ended at 
50.90 cents, up 0.34 cent and December finished at 53.41 cents, down 0.03 cent. 
Tuesday's estimated volume was only 41,323 contracts. 

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


(BE)

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