Tuesday, March 31, 2020  
 
 
 
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DTN Morning Cotton Commentary          03/31 07:54

   Cotton Struggles to Hold Higher 

   After recovering from the depths of 48-cents Monday, the market on Tuesday 
is fighting to stay afloat. 

By Keith Brown
DTN Cotton Correspondent

   After recovering from the depths of 48-cents Monday, the market on Tuesday 
is fighting to stay afloat. Such may prove difficult, as the Dow Jones 
continues to roil on one hand, while the possibly of foreign mill closure 
effects the other. Still, the market hit a 10-year plus low, and that may stay 
for the time being as the charts have become grossly oversold. 

   USDA will release its planting intentions data for 2020 Tuesday at noon. The 
average industry guess is 12.70 million acres, within a range of 11.70 up to 
13.70 million. 

   The U.S. dollar remains the world's safe-haven hideout. After plugging on 
the initial outbreak of the virus within the U.S., it has since recovered as 
the rest of the world seems to be in worse shape. A stronger dollar is seen as 
a detriment to U.S. agricultural exports, but with foreign ports and mills 
experiencing partial or full closures, the U.S. dollar has become less of an 
economic force and more of a flight-to-quality market. 

   For Tuesday, support for May cotton lies at 48.80 cents, its contract low, 
with resistance at 51.70 cents and 52.85 cents. Overnight estimated volume is 
3,735 contracts. 

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


(KR)

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