The cotton market is slightly lower Monday as traders await Wednesday’s monthly supply-demand report. The February data is expected to show slightly lower levels in U.S. and global ending stocks. That report will be out at 12:00 p.m. EST.
CFTC reported an increase in the managed-money funds participation via its Commitment-of-Traders Report last Friday. The managed funds were net buyers of 4,466 contracts last week, which swelled their new long position to 80,862 contracts.
Energy prices are trading both sides of last week’s final settlement. On Friday the Biden Administration restored certain sanction waivers to Iran to allow for international nuclear cooperation surveys. If the United States lifts sanctions on Iran, the country could boost oil shipments, adding to the global supply.
Monday, close-in support for March cotton is 125.25 cents and 124.80 cents, while resistance stands at 128.80 cents and 130.00 cents. The estimated morning volume is 12,032 contracts.