The cotton market continues to seesaw about as it awaits Thursday’s exports-sales data, and Friday’s job report. Additionally, the market is being undergirded by the unrelentingly bullish Chicago grains. Naturally, traders would like to see a substantial sales number to get business back on track. For the jobs report, some economists are forecasting nearly 1 million new jobs were created last month.
Spot May saw one notice tendered Wednesday. That brings the total amount of notices to 67. May cotton expires Thursday on the ICE close.
The U.S. dollar is seeing something of a rebound Wednesday.
The market did acknowledge Tuesday that some rain fell across the West Texas area on Monday. The big winner was Hart, Texas, which saw 1.25″ of rainfall. Still there were many other spots that saw zero precipitation. There was one severe storm, which tracked across a row of several southern counties there, dropping hail ranging in size from nickels up to golf balls.
That event may have led to the slightly higher bias in the estimated rainfall totals there. For Wednesday, close-in support for July cotton is 86.00 cents and 85.75 cents, with resistance at 88.25 cents and 89.30 cents. The estimated morning volume is 5,007 contracts.