Cotton Mulls The Upside

On this first day of spring, the cotton market is trying to regain its upside momentum. Earlier this week, it dramatically rallied, resulting in it becoming overbought. However, decent export sales and Friday afternoon’s CFTC update are encouraging more speculative short-covering as well as new net buying.

Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders information. At last count the managed-money funds were net short a hefty 66,700 contracts. However, given the big volume of Monday and Tuesday, their bearish position may have lessened.

USDA will issue its Planting Intentions report March 31. This will be the first official look at 2026 acres. The survey will be released at noon, EDT on that date.

Crude oil prices are mixed Friday after Treasury Secretary Bessent said Washington may soon lift sanctions on Iranian crude stored aboard tankers, a move aimed at easing price pressures following Iran’s jamming the Strait of Hormuz. In addition, certain European allies indicated they are now willing to help escort oil tankers through the Strait.

Chart support for July cotton stands at 69.10 cents and 68.85 cents, with resistance around 70.60 cents and 71.25 cents. Friday morning’s estimated volume is 19,245 contracts.

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