Cotton Falls in Afterthought

Despite some disbelief surrounding USDA’s Prospective Planting report of Tuesday, overnight the market is spilling. Apparently, the unexpected high acres number is causing some traders and hedgers to rethink their market positions. 

Tuesday’s USDA Prospective Plantings report showed U.S. 2026 cotton planted acres at 9.640 million. This was not only above the average expectation from a pre-report guess of 9.229 million acres, but above the high end of the range of expectations of 9.000 million to 9.635 million. 

Financial markets are high Wednesday following remarks from President Trump in which said he expects the U.S. military forces will leave Iran in a week or two. Those comments also have WTI oil under $100 per barrel Wednesday morning.

Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales report. Previously, net combined seasonal sales were 230,000 bales, far below the recent pace of 300,000-plus. However, exports were 400,600 bales, which was another marketing-year high on shipments. 

All U.S. markets will be closed this Friday for the Good Friday/Easter holiday.

Chart support for July cotton stands at 70.60 cents and 70.00 cents, with resistance around 72.80 cents and 73.10 cents. Wednesday morning’s estimated volume is 30,730 contracts.

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