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DTN Morning Cotton Commentary 04/10 07:09
Cotton Shoots For Strong Week
New-crop December is attempting to post one of its most bullish weeks in
many months.
Keith Brown
DTN Contributing Cotton Analyst
New-crop December is attempting to post one of its most bullish weeks in
many months. As it stands, the market is up some 200 points on the week, with
Friday's session yet to trade. Geopolitical events, weather concerns, and a
shifting speculative position are factors helping drive prices higher.
The Climate Prediction Center is now showing 95% of U.S. cotton area is
suffering from some form of drought. While Texas has a chance of some weekend
rain, the Southeast remains dormant and dry.
Friday, traders will see a fresh readout of consumer prices via the April
CPI. Despite the ceasefire, increased fuel prices will likely be slow to
recede. Thus, inflation may see a bump in its numbers for the next few months.
The report is out at 8:30 a.m. EDT.
Also Friday, the CFTC will update its Commitments of Traders data. Last week
saw managed-money funds had net bought some 21,000 positions, reducing their
net-short carry to some 12,000 contracts.
Chart support for July cotton stands at 73.60 cents and 73.00 cents, with
resistance around 76.00 cents and 76.50 cents. Friday morning's estimated
volume is 31,722 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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