Traders expect another cotton rally. Keep in mind that 80 cents could be profitable and cotton prices are very dependent on economic recovery. Commercial traders may have had difficulty filling some orders.
Will strong Asian demand for cotton override slow demand in the United States and Europe?
Bullish news: Weekly cotton export sales hit the yearly high at 624,000 bales. China bought 533,000 bales. That number eclipsed all market anticipations. Demand from Asia remains strong.
The current U.S. projected carryover is 2.9 million bales. That number not only predicts inadequate cotton supply in 2010 but also 2011.
Traders expect another cotton rally. Keep in mind that 80 cents could be profitable and cotton prices are very dependent on economic recovery. Commercial traders may have had difficulty filling some orders.
Cotton technical charts are positive and fundamentals of supply and demand bullish for new crop. Stocks certified for delivery dropped 284,000 bales last week.
Cotton registered for delivery is shipping out.
Bearish news: Domestic cotton sales were weaker than expected.
India and China have rain in the forecast covering cotton growing areas.
U.S. cotton condition rates 62 percent good to excellent. That number is above average but down 4 percent from last week. Ninety-five percent of the crop is planted and 17 percent is squaring.