DTN Closing Cotton            04/29 14:39

   Cotton Stays Aloft With Low Volume

   The cotton market remained higher today, reflecting the massive decline in 
the net long position held by the managed-money funds.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market remained higher today, reflecting the massive decline in 
the net long position held by the managed-money funds. Traders also are 
awaiting any news from the Federal Reserve's meeting this week, as well as any 
fresh exports-sales data. Lastly, there is likely some end-of-the-month 
squaring being done, given that May 1st is this Wednesday. 

   The CFTC updated the status of the managed-money funds, and the result was a 
near flat position. After several weeks of intense selling, the managed-money 
funds were shown to be net long some 9,500 contracts. At one time that 
speculative group had over 100,000 contracts net long.     

   The Federal Reserve meets this week and will announce its interest rate 
intentions on Wednesday. Traders are not expecting any sort of changes. In 
fact, now some think it will be December before the central bank will lower 
rates. 

   Today at 4 p.m. EDT, USDA will update the planting progress of the 2024 
Crop. Last week's pace of 11% planted was atop the historical pace.  

   There were 198 notices tendered against the Spot May contract. That brings 
total deliveries to some 408 contracts. The May contract expires on May 8. 

   Weather-wise the six-to-ten and the eight-to-fourteen forecasts call for 
above to much above normal temperatures across much of the US Cotton Belt. 
Tomorrow, the weekly US Drought Monitor will be updated, but not released until 
Thursday morning. 

   Today, May Cotton settled at 8002 up 62, July was 8152 plus 62, and December 
finished at 7825, 94 points higher. Today's estimated volume was 
31,919contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




(c) Copyright 2024 DTN, LLC. All rights reserved.