DTN Morning Cotton Commentary          05/01 07:49

   Cotton Lies Atop Ash Heap  

   Even with the start of a new trading month, the cotton market remains 
emotionally and financially drained. 

Keith Brown
DTN Contributing Cotton Analyst

   Even with the start of a new trading month, the cotton market remains 
emotionally and financially drained. The month of April saw one of the worst 
price meltdowns in recent years, leaving speculators crippled, and growers 
frightened. Traders hope that Wednesday's Fed announcements will help soothe 
the across-the-board anxieties that are being felt in most markets.

   Wednesday at 2 p.m. EDT, the Federal Reserve will issue its latest stance on 
interest rates. It is expected there will be no adjustment to the current rate 
scheme, but rather the central bank may infer that no rate reductions are 
forthcoming in 2024. 

   Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales report. 
Last week, saw sales of 177,000, up 21%, but shipments were 261,000, down 2%.

   Weather-wise the six-to-ten and the eight-to-fourteen-day forecasts call for 
above to much above normal temperatures across much of the U.S. Cotton Belt. 
With that, the updated U.S. Drought Monitor will have its results released 
Thursday morning.

   There were zero notices Wednesday against the spot May contract. The May 
contract expires on May 8.

   For Wednesday, chart support for July cotton stands at 77.00 cents and 76.50 
cents, with 80.60 cents and 81.75 cents as resistance. Wednesday morning's 
estimated volume stands at 8,110 contracts. 

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




(c) Copyright 2024 DTN, LLC. All rights reserved.