DJ ICE Cotton Review: Rises As Market Digests Recent Rally

NEW YORK (Dow Jones)--Cotton prices Thursday took a breather from the week's
rally, ending the session modestly higher.

Most-active ICE Futures U.S. May cotton settled up 18 points, or 0.2% at
73.81 cents a pound.

The rally began Monday as cotton futures bounced from 16-week lows. Tuesday,
the nearby contract vaulted to the exchange-imposed trading limit as bullish
government data sparked buying. The U.S. Department of Agriculture added 1
million bales to its estimate of U.S. cotton exports for the year ending July
31, for a new total of 12 million bales. The market again rallied Wednesday,
leaving futures to consolidate near four-week highs Thursday.

May cotton backed off of resistance near 74 cents during the session, said
Boyd Cruel, senior cotton analyst at Vision Financial Markets in Chicago.

Buying at lows pushed prices back above unchanged.

"A lot of people want to buy this market on a break," said Rogers Varner Jr.,
president of Varner Brothers, a brokerage in Cleveland.

Analysts expect the contract to hold in the 70-cent range as cotton demand
grows while supplies dwindle. The same bullish equation pushed the market to
16-month highs on Jan. 4, though futures fell back on bearish outside
influences and the inability of mills to purchase cotton at high levels.

"Unless something crazy happens, I can see [May cotton] trading a range
between 72-76 [cents in the] short term," said Tom Mikulski, senior market
strategist at Lind-Waldock in Chicago.

Cruel said May cotton has technical support at 72.80-72.85.

U.S. weekly export data are scheduled to be released by the USDA on Friday
after a weather delay.

ICE daily cotton stocks decreased by 59,082 500-pound bales Wednesday to
total 468,874 bales with 67,041 decertification orders and 16,128 bales
awaiting review, according to exchange data.

Close Change Range
Mar 72.92 +10 pts 72.26-73.26
May 73.81 +18 pts 73.06-74.09
Dec 72.70 +19 pts 71.80-72.75

You can read the full article here: https://thrakika.gr/en/post/dj-ice-cotton-review-rises-as-market-digests-recent-rally-sA