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DTN Morning Cotton Commentary 05/02 07:40
Cotton Higher Friday on Chinese Overtures
The cotton market is moderately higher Friday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is moderately higher Friday amid indications China may be
wanting "to talk." Currently, China is on May Day holiday, but the trade
ministry announced the willingness to explore trading negotiations with the
U.S. In addition, the ICE Futures were materially oversold, having closed lower
for five consecutive sessions.
Spot May cotton saw no deliveries Friday. Thus far there have been nine
notices issued. Delivery period will run through May 7.
The Labor Department issued its monthly jobs report. Estimates called for
the non-farm payrolls to be 138,000 jobs, however Friday's number was 177,000
new non-farm jobs. The capital Markets will embrace this news as positive.
Also Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of
Traders standings. Last week the managed-money funds had bought 4900 contracts
to reduce their net-bearish carry to some 37,000 positions.
On Monday, USDA will issue its weekly crop progress data. Last week showed
the U.S. cotton crop 15% planted, and also that Texas was ahead by some 21
points.
For Friday, close-in chart support for July cotton stands at 65.25 cents and
64.00 cents, with resistance at 67.00 cents and 67.80 cents. Friday morning's
estimated volume is about 12,632 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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