Archive by author: O A ClevelandReturn

Cotton Prices Dip, Despite Strong Exports

The cotton market had a rough and tumble week as a seemingly bullish supply demand report turned sour.  Prices dipped on the week in spite of increased exports forecast by USDA as well as a lower carryover.  However, it was healthy that the market was able to reverse its downward slide and settle the week on a positive note.  The old crop July contract is expected to become volatile with just 29 more trading days before first notice day.  The likely range is from a low of 79 ...
Read More

Cotton Prices Continue to Push Higher

Prices held at the upper end of the trading range most of the week and for the first time in several weeks the market traded a very narrow range.  The lack of volatility could suggest the old bull is tiring, but then, a new bull may be emerging.  Certainly the extreme drought in the Southwest continues to feed bullish hopes, but another full month of dry weather will be necessary before anything can be written off.  Yes, there are legitimate and grave concerns, but rains by the fi...
Read More

Both High and Low Grades See Strong Demand

Cotton prices continue to follow the surge in exports that is being driven by worldwide demand for cotton and particularly the strong demand for U.S. cotton.  U.S. high grades have effectively been sold out as evidenced by the small level of certificated stocks and the emergence of a very strong taker of delivery notices issued on May contract.  Export demand is further boosted by the abundant supply of U.S. low grades comprised of low micronaire and barky cotton.  The demand for ...
Read More

Cotton Prices Stable, Demand Increases

Cotton trading turned a bit puny all week as the May futures contract moved closer to expiry and the July contract prepared to become the spot month.   Open interest in the May contract has quietly dissipated.  Thus, any expected fireworks on the May contract have been all but abated and the expiry will be silent.  Delivery notices can be issued at the conclusion of trading on Monday, April 23.   However, the July contract remains supported by the bullish on-call sa...
Read More

Growing Demand Moves Cotton Prices Above 78 cts

Cotton posted gains on the week as the old crop May and July futures contracts traded within the 82.5-84.5 cent range and closed above 83 cents.   May was impressive as it moved through the fund long roll positions (sell May/buy July) and posted gains despite the selling pressure created by rolling positions to the July contract.  In fact, the May contract is suggesting that the market is facing a price inversion (the nearby contract is higher than the next contract).  Mill d...
Read More

After A Volitile Week, Cotton Prices Remain High

Cotton prices fought the battle with volatility all week, but settled higher as both the old crop May and July contracts settled above 82 cents.  The new crop December contract traded above 78 cents, but settled the week at 77.94 cents. Fundamentals remained much the same as the prior two months, very strong export sales and even stronger shipments, coupled with active on-call sales. Yet, on-call sales across all futures contracts declined during the week due to heavy fixations on the May c...
Read More

Q1 Ends with Higher Cotton Prices

Cotton trading continues mixed, but all contracts settled higher he end of the first quarter of the year.  Earlier the nearby May and July contracts slipped below 81 cents, but finished the week challenging the 82 cent mark.  The new crop December contract clawed its way back to just below 78 cents and the week’s fundamental news purports to push the December futures contact above 78 cents, the price level we had advised to growers to begin their pricing. USDA’s annual pros...
Read More

Cotton Prices Still Rising, Despite Increased Planting

Plant…Plant…Plant continues to be the motto, but it is also time to add Price…Price…Price to the discussion.   The new crop December contract took a hit this week, but settled at week’s end above the trend line, thus keeping the uptrend in force.  The market faced an uphill battle all week, and actually lost some momentum, but came back at the end of the weekly trading period to post a close above the December trend line.  Thus, while the bul...
Read More

Cotton Prices Push Past 82 cts on Strong Demand

Exceptionally strong demand continues to underpin the bull’s hopes for higher prices while the bears are supported by the idea that market trading has become dull and listless in its attempts to break out above the highs established two weeks ago.  The market’s misunderstanding of tariffs and the resulting Wall Street attitude has also kept the market skittish.  The 82 cent plus level has provided excellent price support for both the May and July futures contracts as mills ...
Read More

Speculation Drives Up Cotton Prices

Cotton captured the attention of commodity speculative funds all week as USDA reports were bullish to neutral and prices returned to the prior month’s highs, posted new highs, and triggered technical signals of yet higher prices.  However, we must caution that prices have moved only about a cent above where the market failed on its last leg up.  Presently, the fundamentals of supply and demand offer a brighter outlook than six weeks ago, but open interest, while increasing, has b...
Read More
Page 5 of 7 First 34[5]67 Last