Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
Cotton futures in China rallied almost 1% overnight. The market should not see much resistance from outside markets this morning, and a weak dollar could provide some light support. The 6-10 and 8-14 day forecast models show a hot and dry trend for the West Texas region, and this is also supportive to prices. Traders remain very uncertain over the world production outlook for the new crop, with increased output a strong possibility for India and Pakistan and maybe even China. Cotton prices in India hit a record high in late March, and this may have sparked a sharp rise in planted acreage, up as much as 15% from last year. India is the world’s second largest producer. It has capped exports at 5.5 million bales this year, but if the new crop season shows signs of record-type production, India could be a tough competitor in the exports market for the coming season. July cotton closed moderately higher on the session yesterday, while December cotton closed sharply higher on the day with the contract up as much as 11.47 from Tuesday’s lows. The shift to a hot and dry weather pattern for West Texas has raised concerns over early growing conditions. On top of the Texas issues, traders see lost acres along the Mississippi as a threat to production this year and drought conditions are also on the rise in Georgia. Certified cotton stocks deliverable against the exchange totaled 183,533 bales as of May 24th, up from 181,056 bales the previous session.
TODAY’S GUIDANCE: The new crop season is off to a poor start in the US, while other countries appear to be in a position to make up for some of the losses. However, the focus might remain on the US for a while, and the weather outlook is still threatening. There is a slight chance for some thunderstorms in Lubbock on May 31st, but this looks to be the only chance in the next ten days, and temperatures are expected to hit 101 Friday and 105 Saturday. Look for support for December cotton near 129.22 with resistance at 132.86. A close over resistance would leave 144.66 as the next target.
Cotton: Bad Start to US; Other Countries May Make Up Loses; US Focus For Now
by Terry Roggensack on May 26, 2011
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
Cotton futures in China rallied almost 1% overnight. The market should not see much resistance from outside markets this morning, and a weak dollar could provide some light support. The 6-10 and 8-14 day forecast models show a hot and dry trend for the West Texas region, and this is also supportive to prices. Traders remain very uncertain over the world production outlook for the new crop, with increased output a strong possibility for India and Pakistan and maybe even China. Cotton prices in India hit a record high in late March, and this may have sparked a sharp rise in planted acreage, up as much as 15% from last year. India is the world’s second largest producer. It has capped exports at 5.5 million bales this year, but if the new crop season shows signs of record-type production, India could be a tough competitor in the exports market for the coming season. July cotton closed moderately higher on the session yesterday, while December cotton closed sharply higher on the day with the contract up as much as 11.47 from Tuesday’s lows. The shift to a hot and dry weather pattern for West Texas has raised concerns over early growing conditions. On top of the Texas issues, traders see lost acres along the Mississippi as a threat to production this year and drought conditions are also on the rise in Georgia. Certified cotton stocks deliverable against the exchange totaled 183,533 bales as of May 24th, up from 181,056 bales the previous session.
TODAY’S GUIDANCE: The new crop season is off to a poor start in the US, while other countries appear to be in a position to make up for some of the losses. However, the focus might remain on the US for a while, and the weather outlook is still threatening. There is a slight chance for some thunderstorms in Lubbock on May 31st, but this looks to be the only chance in the next ten days, and temperatures are expected to hit 101 Friday and 105 Saturday. Look for support for December cotton near 129.22 with resistance at 132.86. A close over resistance would leave 144.66 as the next target.
Tags: Cotton, Softs
About Terry Roggensack