Technically, a close for May cotton outside the pre-Easter break "limit down/limit up" 7500-6900 range must still be respected. However, I suspect, a close now above last Monday's 7178 will stir up things also.
As expected, there was significant trade buying between 6900 and 6700 uncovered by last Mondays break. The time spent below 6900 on Tuesday was really quite fleeting. Once the early week break was over, December found excellent support near 8000.
The support beneath the cotton market should hold barring another meltdown in commodities in general. Once again, cotton was the forgotten commodity with soybeans gaining 10 to 65 cents despite a bearish acreage report, corn posting new all time highs in gaining 32 to 37 cents.
Chicago and KC wheat was mixed but Minneapolis wheat closed 81 cents higher for the week. With that type strength in outside markets, it is only a matter of time until the fund buying comes back to cotton.
Last Friday's Ag Market Network conference call originated from the Lubbock civic center right before Plains Cotton Grower's annual meeting. The panel was joined by special guest Anthony Tancredi, president of Allenberg and immediate past president of the Texas Cotton Association in a discussion of the recent cotton market problems.
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