Cotton Up Tuesday; World Down

The cotton market is slightly higher Tuesday amid a weaker U.S. dollar and a potential spat over Greenland. There were economic threats from both sides, as the U.S. and Europeans fuss over the ownership of Greenland. Thus far, the U.S. dollar and the Dow Jones are measurably lower, while gold and silver have spiked to all-time highs.

Friday’s CFTC update of its Commitments of Traders data showed the managed-money funds had net-sold some 2,600 positions. Their actions increased their net-short position to 50,372 contracts. Their record stands at 81,000-plus contracts net-short.

With the observance of the Martine Luther King Day holiday on Monday, most government reports will be delayed a day. Thus, weekly export sales will be released this Friday at 8:30 a.m. EST.

Chart support for March cotton stands at 64.50 cents and 64.00 cents, with resistance hovering about 65.25 and 65.80 cents. Tuesday morning’s estimated opening volume is 11,675 contracts.

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