Cotton Edges Higher Wednesday

After a couple of nerve-racking sessions, the cotton market is trying to regain its composure. No doubt recovering outside markets are lending supporting hands.

Tuesday, President Trump pledged the U.S. Navy would escort tankers and ships through the Strait of Hormuz. All the while, the allied coalition is knocking out Iranian missile launching sites, and that is steadying nerves.

Spot March cotton saw zero notices Wednesday. Thus far, some 600 delivery tenders have been issued. The delivery period runs through Monday, March 9.

Crude oil seems to be “congealing” at the top end of its recent gains. Obviously, traders are assessing the hour-by-hour situation of U.S.-Israeli conflict with Iran. As mentioned, the U.S. Navy will take an active role of escorting ships through the Strait of Hormuz. As previously noted, one fifth of the world’s oil and liquefied natural gas, and 35% of fertilizers pass through the waterway.

Thursday, USDA will issue its weekly export sales report. Last week saw net sales of 253,000 bales, off 46%, with shipments of 193,000 bales, a 12% increase. The numbers are out at 8:30 a.m. EST.

Chart support for July cotton stands at 65.75 cents and 65.15 cents, with resistance around 66.85 cents and 67.50 cents. Wednesday morning’s estimated volume is 18,718 contracts.

Keith Brown can be reached at commodityconsults@gmail.com or by calling (229) 890-7780.