The cotton market is storming out of the gate Tuesday morning, encouraged by a strong Dow Jones and weaker U.S. dollar. In addition, gold and crude oil are higher. Last week, the market saw a bullish supply-demand report and strong weekly export sales, but only closed about 70 points higher on the week. Clearly all the scary political rhetoric coming out of Washington took its toll on many markets last week.
Last Friday the CFTC reported managed money speculators had reduced their bullish position to roughly 69,500 contracts. According to the government’s data, the managed money traders had net sold some 1,100 contracts.
Weekly export sales will be delayed until this Friday due to the observance of the MLK holiday on Monday. Last week’s data saw a strong surge in business with China as the top customer.
This Week’s Calendar:
Friday: Weekly Export Sales at 8:30 a.m. EST
For Tuesday, close-in support for March cotton is 80.10 cents and 80.00 cents, with resistance at 82.10 cents and 82.75 cents. The current estimated volume is 12,179 contracts.