The cotton market is lower Friday morning as COVID-19 infections have nearly paralyzed India. The growing concern is whether India will detrimentally affect its neighbors. That part of the world is a major spoke in the global “spinning wheel.” Cotton was off as much as 1 cent earlier despite the fact the Chicago grains continue to run higher.
The Labor Department reported its jobs data for April and expectations were wildly erroneous. Economists were expecting some 900,000 new jobs, but the actual number was 266,000. In quick response, the Dow and the Dollar dropped.
Friday afternoon the CFTC will issue its weekly Commitment of Trade report. It will be interesting how “committed” the sold out managed-money funds are about being net long the cotton market.
Into next week, traders will see monthly supply-demand numbers for May. In this report, USDA will also take a stab at foreign production, as well as domestic. That report will be on Wednesday, May 12, at high noon. Also, the market will see Crop Progress on Monday afternoon, and then on Thursday, the weekly Exports Sales and Shipments report.
For Friday, close-in support for July cotton is 88.40 cents and 87.60 cents, with resistance at 91.20 cents and 93.70 cents. The estimated morning volume is 6,330 contracts.