Cotton Has Winter Blues

The cotton market is somewhat frozen in place, not wanting to break or rally. The ICE futures continue to beat out a narrow, sideways path, waiting on some new fundamental or technical twist to emerge. Most eyes are focused on the geopolitical events unfolding around the world.

President Trump will lay out his worldview agenda at the Davos Economic summit Wednesday in Switzerland. He will make the U.S. case for acquiring Greenland. 

The potential for another shutdown of the U.S. government is looming large. Both chambers of Congress are trying to pass certain funding legislation, but politics have typically entered the fray.

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

Also on Friday, the CFTC will update its Commitments of Traders information. Last Friday’s numbers showed managed-money funds had net-sold some 2,600 positions, increasing their net-short carry to 50,392 contracts.

Chart support for March cotton stands at 64.20 cents and 63.85 cents, with resistance hovering about 65.00 cents and 65.25 cents. Wednesday morning’s estimated opening volume is 7,205 contracts.

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