As the cotton market ends yet another turbulent week of being jerked around by the coronavirus, it stands at 900 points down for the week, but only 84 points down on the day. Somehow, in the market’s sea of negativity, being down only 84 points sounds friendly of sorts.
There is an article in the Wall Street Journal detailing the unraveling foreign textile business. Essentially, with the U.S. and especially Europe in a shutdown, apparel sales are rapidly declining. Moreover, some of those nations are shuttering some mills and furloughing workers.
After a three-day four-thousand-point rally, the Dow is down some 900 points. However, it’s Friday, so profits are being booked. Still, the decline may weigh, and already is, on cotton prices. Next week, USDA will issue its planting intentions, and early guesses suggest a letdown in acres. Still, even reduced 2020 acres may not be enough to save the cotton market for all of 2020.
For today support for May cotton is 52.00 cents and 50.00 cents, with resistance at 54.45 cents and 56.00 cents. Overnight estimated volume stands at 5,067 contracts.