BY JACK SCOVILLE

General Comments: Futures were a little higher on news that the Chinese government auction of its Cotton stocks went poorly. Buyers there were not interested due to poor quality and relatively high prices. The news implied that demand for world Cotton can stay strong as mills in China will still import despite big import fees and taxes. The current low prices are bringing into question what farmers in Texas and the Delta and Southeast will plant this year. Some are wondering if planted area might be lower this year here in the U.S. because of weak prices against competing crops. The area lost would go mostly to Corn and Soybeans. Current weather features some precipitation in Delta and Southeast areas, but western Texas was mostly dry. Delta areas will turn dry today. Trends are not well defined on the charts, but ideas are that the market can continue to work higher overall.

Overnight News: The Delta will be dry all week and Southeast will get showers or rains through Thursday, then will see dry conditions move from west to east the balance of the week. Temperatures will average near to above normal. Texas will get dry weather. Temperatures will average near to above normal. The USDA spot price is now 71.65 ct/lb. ICE said that certified Cotton stocks are now 0.102 million bales, from 0.101 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 77.30 and 78.40 March. Support is at 75.30, 74.40, and 73.70 March, with resistance of 76.40, 76.95, and 77.05 March.