The cotton market sloughed bearish export sales Thursday to essentially close unchanged. However, with Friday’s surprise job data, the Dow Jones is sharply higher and that is encouraging cotton to stay its upside course. The employment news showed a stunning increase of 2.5 million jobs for May, with the jobless rate declining to 13.3%.
The gains were the single largest one-month increase on record. Such data indicates an economic turnaround could be close at hand, which could be positive for domestic demand for cotton.
Next week, the market will see supply-demand numbers on Thursday, plus the usual export sales. That information will be followed by Friday’s options expiry for the July Contract.
Then on the 24, July cotton will enter into delivery, meaning all price-later contracts will be fixed. Then, on the last day of June, USDA will report on 2020 Acres. The stage for the new crop season is being rapidly set.
To that point, Texas weather continues to look threatening. The latest 8/10 day forecasts shows above normal temperatures and below normal rainfall for that region. The 7-day emphasis has no rain for West Texas.
For Friday, support for July cotton is 60.00 cents and 59.35 cents, with resistance at 61.25 cents and 62.00 cents. Current estimated volume is 9,632 contracts.