December Cotton prices have dropped over 600 points from last Friday's close. The market has been pressured since the release of the USDA's Acreage Report on Monday. The report showed that 9.246 million acres was planted. The March report estimated plantings at 9.39 million acres. Even though the planting number came in lower than the March estimate, the report was viewed as bearish because traders were expecting plantings to come in around 9 million acres or even slightly lower. The market should find some support around 74.00-74.50 and find underlying support due to the deteriorating crop conditions in Texas. The 6/30 crop progress report showed the Texas crop at 45% good-excellent versus 45% the previous week, 32% fair versus 32% the previous week, and 39% poor to very poor versus 38% the previous week. Support for December is at 74.00-74.50. Resistance at 76.00-76.30.
Boyd Cruel
Alaron Research Team
800.216.1491
bcruel@alaron.com
There is a substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.