DTN Morning Cotton Commentary          05/22 07:11

   Cotton Stabilizes Ahead of Holiday  

   Overnight, the cotton market is gently pressing its brakes. Ahead of a 
three-day weekend, some traders are pulling up and covering their short 
positions. 

Keith Brown
DTN Contributing Cotton Analyst

   Overnight, the cotton market is gently pressing its brakes. Ahead of a 
three-day weekend, some traders are pulling up and covering their short 
positions. Yet, we are also understanding there is more than casual interest 
being seen from cash merchants at these price levels. Traders will assess 
Friday's CFTC data and watch the weekend weather, especially across Texas, 
implying next week will be pivotal to price.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
data. Last week, the managed-money funds bought some 8,300 positions, lifting 
their net-long carry to 58,000-plus. The all-time bullish record, from 2018, 
stands at 108,788 contracts.

   Option expiration for the July contract is Friday, June 12, or 21 days 
hence. Then spot July delivery commences on June 24, running through July 9. 

   With the ICE Futures under the 80-cent mark, the daily limit has reverted to 
three cents, up or down, from the previous settlement.

   The ICE Futures will be closed this Monday for the observance of Memorial 
Day. Trading will resume Monday night at 9 p.m. EDT.

   The 6- to 10-day forecast (May 27-May 31) shows below-normal temperatures 
for Texas, and normal readings for the U.S. Delta and the Southeast. Rain-wise, 
the entire Cotton Belt -- Texas to Georgia -- shows above to much-above normal 
chances for rain events.

   Chart support for December cotton stands at 78.25 cents and 76.00 cents, 
with resistance around 82.50 cents and 83.30 cents. Friday morning's estimated 
volume is 20,121 contracts.

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




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