DTN Morning Cotton Commentary          04/16 08:28

   Cotton Retreats Ahead of Weekend

   The cotton market is trading lower Friday morning as some profit-taking is 
being seen from this week's rally. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is trading lower Friday morning as some profit-taking is 
being seen from this week's rally. Coming into Friday, the July market was up 
some 250 points, but given the shaky economic and political vibes, traders are 
quick to take their money.

   Into next week, USDA will report on the planting progress for the 2021 crop 
on Monday at 4 p.m. EDT. Currently the pace of planting seems to be "normal", 
but adverse weather in West Texas continues to hamper farmer's efforts and crop 
stands. 

   Next Friday is the last trading day before spot May cotton enters its 
delivery. With tight stocks, some traders are expecting a benign notice period. 
May Cotton expires on May 7. 

   Friday afternoon at 3:30 p.m. EDT, the CFTC will report on the position 
status of speculators and hedgers. Given the recent rise in price has been 
accompanied by a decline in open interest, it's thought to be an indication 
that certain commercials are buying back their short hedges. 

   Weather-wise, the 6-10 day forecast shows above normal rainfall for West 
Texas, but below-normal precipitation conditions return in the 8-14 day. The 
Southeast is looking at heavy rains Friday and Saturday.

   For Friday, support for May cotton is 83.20 cents and 82.40 cents, with 
resistance at 85.10 cents and 86.20 cents. The estimated morning volume is 
7,102 contracts.

   Keith Brown can be reached at commodityconsults@gmail.comor by calling (229) 
890-7780.




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