The cotton market is higher this morning as traders recover from last week’s unfriendly planting intentions. USDA reported on March 31 that 2022 acreage was some 12.20 million, a near one percent increase from last year.
However, there are emerging stories that India’s crop continues to harvest short. India was besieged this season by several devastating weather events, as well as a heavy infestation of pink boll-worms. In addition, traders continue to monitor the deepening drought in West Texas.
Weather-wise, the one to five-day forecast shows zero rain for West Texas. The six to ten-day models offer above normal temperatures and below-normal precipitation. This week, NOAA will update its National Drought Monitor. Of late, the monitor has indicated that the drought gripping West Texas and Oklahoma is deepening.
CFTC updated its Commitments-of-Traders information Friday afternoon. Essentially, the closely-watched managed-money funds were net buyers of some 1,400 last week. Their action increased their net long position to 75,707 contracts.
This Friday, USDA will issue new supply-demand data for April. Traders are expecting an uptick in domestic exports, and with that, a decline in U.S. carryout. In addition, it’s hoped global stocks will suffer another decline.
For Monday, close-in support for May cotton is 134.00 cents and 133.10 cents, while resistance stands at 137.00 cents and 140.00 cents. The estimated morning volume is 4,964 contracts.