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DTN Morning Cotton Commentary 03/04 07:16
Cotton Edges Higher Wednesday
After a couple of nerve-racking sessions, the cotton market is trying to
regain its composure.
Keith Brown
DTN Contributing Cotton Analyst
After a couple of nerve-racking sessions, the cotton market is trying to
regain its composure. No doubt recovering outside markets are lending
supporting hands.
Tuesday, President Trump pledged the U.S. Navy would escort tankers and
ships through the Strait of Hormuz. All the while, the allied coalition is
knocking out Iranian missile launching sites, and that is steadying nerves.
Spot March cotton saw zero notices Wednesday. Thus far, some 600 delivery
tenders have been issued. The delivery period runs through Monday, March 9.
Crude oil seems to be "congealing" at the top end of its recent gains.
Obviously, traders are assessing the hour-by-hour situation of U.S.-Israeli
conflict with Iran. As mentioned, the U.S. Navy will take an active role of
escorting ships through the Strait of Hormuz. As previously noted, one fifth of
the world's oil and liquefied natural gas, and 35% of fertilizers pass through
the waterway.
Thursday, USDA will issue its weekly export sales report. Last week saw net
sales of 253,000 bales, off 46%, with shipments of 193,000 bales, a 12%
increase. The numbers are out at 8:30 a.m. EST.
Chart support for July cotton stands at 65.75 cents and 65.15 cents, with
resistance around 66.85 cents and 67.50 cents. Wednesday morning's estimated
volume is 18,718 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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