TodayΆs big leap was certainly welcome by producers, but itΆs suspicious because it happend on very low volume and weΆve now had three “up” days in succession.
HereΆs the chart picture after todayΆs close:
Further, NASS just released the weekly crop condition ratings and it shows improvement the past week. 47% of the nationΆs crop is now rated “good” to “excellent”, up 4 pts. from a week ago and tied with last year.
Further, the portion of the crop rated “poor” to “very poor” has declined to 17%, down 6 pts. from last week and now lower than a year ago when 18% of the crop rated poor to very poor.
ItΆs very hard for a rally in cotton to be sustained if yield potential is improving. ThatΆs the message that greets traders with todayΆs crop progress report; improving yield potential.