The cotton market started the new month and new quarter with the old crop lower and the new crop higher. The old crop zoomed higher on Friday amid a lower than expected acres intentions number. With only a finite amount of last year’s supply, the lower intentions put additional bullish pressure on the May and July Contracts. Thus, Monday may have been all about profit-taking.

The new crop was higher Monday on follow-through buying from Friday as obviously the numbers were indeed new crop friendly. To some degree, Monday may also have seen some profit-taking on the old crop-new crop spreads.

Cumulative sales have reached 90.2% of USDA forecast for the 2018-19 season. The five-year average is 92.2% for the time of year. Last week, saw China a net participant buyer in both crop years in USDA’s weekly sales and export report. Additionally, the U.S.-China trade treaty, if there is one, would require China to buy massive amounts of U.S. manufactured and agricultural products.

The commitment of traders report, dated March 26, indicated the managed money traders bought some 12,000 contracts. That move took them from net long from net short by a mere 600 contacts.

For Monday, May cotton settled at 77.36 cents, down 0.25 cent, July at 78.21 cents, down 0.10 cent and December cotton at 75.92 cents, up 0.48 cent. Monday’s volume was an estimate 40,490 contracts.