Cotton futures sold off VERY aggressively in the spot July again today and this time it took new crop contracts down sharply right along with them.
HereΆs a look at the weekly chart for cotton futures have todayΆs close:
Despite the incredible thrust in the nearby contracts last week, the rocket stalled at March highs and the chart now looks like there may have been a “double top” created on the weekly cotton chart.
USDA came out with crop condition and planting progress Monday afternoon and it will likely keep cotton futures on the defensive tomorrow. Planting has hit 95% complete, down just 2 pts from the 5 year average and just 3 pts from last year.
Cotton squaring has hit 10%, down almost half from the 5-year average of 19% and just over a third of last yearΆs squaring at 26% by now. As for crop conditions, theyΆve apparently stabilized in the last week. 42% of the crop is rated “good to excellent”, same as last week. And 19% is rated poor to very poor, which is DOWN 2 pts from last week. So on balance, crop “condition” improved, but ever so slightly.
Catch-up sales are advised, but no more than catch-up.