DTN Morning Cotton Commentary          07/07 07:29

   Cotton Plows Ahead Tuesday

   The cotton market is again moving higher Tuesday morning in response to 
weather concerns, as well as positive outside markets. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is again moving higher Tuesday morning in response to 
weather concerns, as well as positive outside markets. Reports suggest China 
purchased five cargoes of U.S. soybeans and that is having a positive spillover 
effect on the cotton trade. 

   USDA released its weekly Crop Progress report Monday and it showed 46% of 
the U.S. cotton crop was rated good to excellent as of July 5, down from 48% 
the previous week and 52% a year ago. The five-year average for this date for 
Georgia and Arkansas showed improvement last week, but Missouri and Mississippi 
declined. The report also showed 49% of the U.S. cotton crop was squared as of 
July 5, up from 47% a year ago and the five-year average for this date at 47%.

   The CFTC released its holiday-delayed Commitments of Traders Report 
yesterday. According to its data the managed-money funds net-sold some 6,400 
positions, thereby reducing their net-long carry to 31,985 contracts.

   Also, this week, traders will see new export sales data on Thursday, 
followed by a monthly supply-demand update on Friday. That July WASDE will be 
released at noon.

   Spot July remains in delivery, however there were zero notices for Tuesday. 
To date, there have been 617 contracts delivered. The delivery period runs 
through Thursday, July 9.  

   Chart support for December cotton stands at 78.60 cents and 78.00 cents, 
with resistance around 80.00 cents and 81.10 cents. Tuesday morning's estimated 
volume is 17,205 contracts.

    

   Keith Brown can be reached at commodityconsults@gmail.com or by calling 
(229) 890-7780.




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