Cotton prices ended the week moving to the downside, but with the weekly settlement showing a 24-point gain for the week.  The rather dull week was highlighted by the USDA June supply demand report.  The report carried a bearish sentiment as world ending stocks were increased.  More importantly, the report indicated a weakness in world demand, a key signal that suggests a weak market.  Yet, the question remains as to whether the weakness has already been reflected in mar...

If the cotton market were a heavyweight fighter the referee would have signaled a TKO this week.  December futures have suffered six consecutive days of losses and going into Friday’s settlement the cumulative loss was 292 points, about 3 cents.  Fundamental news was hard to come by, but demand, especially in a slowing of Chinese demand was noted.  The slower business was non-tariff related as mills cut back hours and also yarn inventory began to build.  While...

Cotton prices had a plus week with December gaining 121 points going into the weekly close at 67.55.  The market found solid support all week as mills were active with price fixations and excellent sales of both old crop and new crop.  Mills have demonstrated a conscious effort to fix prices now that trading has been below 68 cents.   There has been no need to chase prices higher.  The 65-67 cent support level held the past two weeks. Look for that price range to maintai...

One had to dig deep this week to find positive news in the cotton market. Too, it could only be found in the markets double bottom technical support between 66 and 67 cents, basis the December contract.  Even at that, going into the weekly close that support was showing slight weakness.  Thus, the panic trading that occupied the market all week, while seeming to abate somewhat, remains a primary concern.  As one analyst put it, “I wonder if we could export more if we ga...

The weakening demand fears related to the U.S.-China tariff dispute as well as the resurgence in the world demand for Brazilian cotton led the New York ICE contract lower all week.  Going into the weekly close the December contract had lost 455 points on the week.  In fact, the market was lower during 9 of the past 11 trading sessions and lost 681 points, essentially losing SEVEN cents since it became evident that the tariff dispute was far from settled.  Most of this loss, i...

As was cautioned in last week’s newsletter cotton prices came under pressure all week and new crop December prices broke below the psychologically important 75 cent support level, giving a good victory to the market bears.  The long term support at 72.50 cents remains in place, but the psychological impact to the market was damaging.  Many growers view the 75 cent level as an absolute bare minimum breakeven point.  Weekly export sales and shipments were less than impres...

Cotton futures relieved their seriously overbought conditions and charged ahead to near the prior week’s settlements.  Reasonably good export sales and shipments were positive for the market.  Too, continued speculative and fund buying across commodities based on the continued economic difficulty caused by the swine flu epidemic in China pushed prices higher.  However, bullish support also came Friday with the release of USDA’s March prospective plantings report. ...

Cotton prices were influenced by the swine flu disaster in China and its spillover into all commodities.  The price rally continued higher as fund managers gave up their attempt to drag prices lower and the ensuing short covering sent the bears running for cover as they exited losing positions.  While the rally moved to 78 cents, basis there nearby May contract, it met rather stiff price resistance on an attempted move to 78.50 cents.  Holding above the 77.00-77.25 cent level is c...

Day after day after dark day, cotton continues to have a bad month.  Pretty soon, someone might even notice, you think?  Certainty, those with offices in Washington have not.  Old crop futures prices settled a few points higher with the May futures contract at 73.49 cents while the new crop December contract settled the week at 73.50.  Both contracts are working hard to reach the 75 cent level, but market fundamentals, led by that now infamous fundamental, government interfer...

Cotton prices continue trapped in a very narrow trading range. This week, March has had a high of 7411 and a low of 7245 for a measly 166 points. That’s not to say the trading has been lackluster because volume has been quite large, but the activity has been limited mostly to the rolling of positions from March to May. March closed the week at 7255, down 109 points on the week.For the first time since December, USDA released another supply/demand estimate for folks to debate. The big globa...