DTN Morning Cotton Commentary          03/20 06:37

   Cotton Mulls The Upside 

   On this first day of spring, the cotton market is trying to regain its 
upside momentum. 

Keith Brown
DTN Contributing Cotton Analyst

   On this first day of spring, the cotton market is trying to regain its 
upside momentum. Earlier this week, it dramatically rallied, resulting in it 
becoming overbought. However, decent export sales and Friday afternoon's CFTC 
update are encouraging more speculative short-covering as well as new net 
buying.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
information. At last count the managed-money funds were net short a hefty 
66,700 contracts. However, given the big volume of Monday and Tuesday, their 
bearish position may have lessened.

   USDA will issue its Planting Intentions report March 31. This will be the 
first official look at 2026 acres. The survey will be released at noon, EDT on 
that date.

   Crude oil prices are mixed Friday after Treasury Secretary Bessent said 
Washington may soon lift sanctions on Iranian crude stored aboard tankers, a 
move aimed at easing price pressures following Iran's jamming the Strait of 
Hormuz. In addition, certain European allies indicated they are now willing to 
help escort oil tankers through the Strait.

   Chart support for July cotton stands at 69.10 cents and 68.85 cents, with 
resistance around 70.60 cents and 71.25 cents. Friday morning's estimated 
volume is 19,245 contracts.

    

    

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




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