Cotton futures have recently digested some bearish news of domestic sowings and exports, but it hasn’t been enough apparently to significantly take this market down. Cotton futures ended down six points today to settle at .5890 in today’s trading at the InterContinental Exchange in New York.
News coming from the USDA last Thursday revealed doubts that US farmers will manage the near 1M acres increase for cotton sowings according to a farmer’s survey. In addition, there is wetness in major growing areas which is raising the doubts farmers will realize the the plantings they’re hoping for.
“Cotton (futures) prices seem to be defying the fundamental assessment – in my opinion – with upland cotton exports nearly one-half of what the national average is of the prior four weeks,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental assessment of the cotton futures market. Plotkin added, “Plus, adverse weather is currently hampering field preparation and early plantings in the Mississippi Delta region and other southern states.”
Cotton futures trend has recently turned “up” albeit with little follow-through. Cotton futures (for May delivery) have rallied a nickel since the February 29th low and still appear to be strong.
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