DTN Closing Cotton            04/23 13:46

   Cotton Has Tuesday Unraveling

   Unable to capitalize on Monday's positive trade, the cotton market closed 
lower Tuesday. 

Keith Brown
DTN Contributing Cotton Analyst

   Unable to capitalize on Monday's positive trade, the cotton market closed 
lower Tuesday. Prices are close to threatening their annual lows. Speculators 
continue to liquidate bullish positions ahead of Wednesday's impending delivery 
for May cotton.   

   As mentioned, spot May will enter its delivery on Wednesday, April 24. 
Coming into Tuesday's trade, the open interest for the May Contract stood at 
1,255. It should be noted that ICE approved certificate stocks (176,600 bales) 
are the highest since July 2017.

   This Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales. 
Last week's business showed that current season net sales were 146,100, up 79%, 
while shipments were 266,700, off 3% weekly.   

   Crude oil was higher Tuesday, pushing on the $83 per barrel mark. Prices 
turned up as traders see slowing manufacturing activity as synonymous with the 
idea that the Federal Reserve will eventually lower interest rates this year. 
Interestingly, the energy market largely has a deaf ear concerning the threat 
of looming Iran oil sanctions

   Tuesday, May cotton settled at 80.22 cents, up 0.18 cent, July was 81.72 
cents, down 0.70 cent, and December finished at 78.08 cent, 0.41 cent lower. 
Tuesday's estimated volume was 37,681 contracts.  

   Keith Brown can be reached at commodityconsults@gmail.com




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