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DTN Closing Cotton 06/28 13:51
Cotton Drops "Lifeline"
Cotton's wee hour reversal to 99 cents failed to hold, and New Crop ended
lower today.
Keith Brown
DTN Contributing Cotton Analyst
Cotton's wee hour reversal to 99 cents failed to hold, and New Crop ended
lower today. Many traders were hoping to see that long-overdue turnaround, but
the market continued to "bleed". Timing-wise, the market is approaching
end-of-the-month, end-of-the-quarter, and mid-year. Those are calendar marks
where funds and huge investors typically revamp their positions. Overall, the
psychology of today's lower close was "tall".
Supposedly China is lifting certain COVID-19 restrictions, which many
traders took as potentially friendly, but today's lower close momentarily
debunked that notion. Most likely the managed-money funds and large investors
continue to liquidate due to fears of demand destruction from China and chart
technicals. The December Market is way below its 100-day average of 113.00.
This Thursday USDA will issue its weekly exports-sales report, and the big
hope is that there will be no cancellations in that report. For the acres
report, some traders feel 2002 plantings will exceed the March intentions.
However, it's not planted acres but how they yield that matters. Exports are
out at 8:30 am, while acres will be released at noon.
For today, July Cotton settled at 100.12, down 23, December closed at 93.48,
minus 57, and March 23 finished at 89.40, 12 points lower. Today's estimated
volume was 58,363 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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