The market is trading higher Wednesday as it recovers from its bearish wounds of Tuesday. Tuesday saw cotton sharply decline in sympathy with a collapsing Dow Jones and falling industrial commodities, such as copper. The underlying basis for that decline was fears over Ukraine.
The ICE Exchange reported there were zero deliveries again Wednesday against the spot contract. March cotton empires March 9.
Weekly export sales are delayed until Friday. Last report saw waffling sales but encouraging shipments of 277,000 bales. China was the top participant.
The USDA Ag Forum meets this week. Traders are expecting government tabulators to reinforce the idea of greater 2022 planted acres.
Returning to the news of the day, Ukraine warned its citizens to avoid traveling to Russia and to leave that country immediately if they are already there. The Ukrainian government later voted to impose sanctions on 351 Russian lawmakers and has called up 50,000 reservists. Russian President Vladimir Putin said Wednesday that Moscow is “always open” to diplomacy.
Wednesday, close-in support for May cotton is 120.30 cents and 119.50 cents, while resistance stands at 121.50 cents and 123.10 cents. The estimated morning volume is 3,783 contracts.
