By admin       2019-04-01

Cotton market higher overnight as the upward technical trend remained intact. For the past two days, the market suffered a sharp correction as traders took profits ahead of Friday’s acres intentions data.There was some talk of a top being in place, but despite heavy selling, little chart damage occurred. Thus, some bullish traders, hopeful for fewer acres and for a U.S.-China trade deal to happen soon, are re-entering the market from the bullish side today.For today’s number, the average trade guess is 14.50 million acres, which is about a 2.9% increase over last year. Interestingly, USDA’s analysts suggested a mere one percent increase at its February Outlook Forum. Seemingly, the acres battle lines are drawn.Thursday’s export sales were a combined 394,500 bales. China was a net buyer in both crop seasons. Cumulative sales for 2018/2019 have now reached 90% of USDA’s initial seasonal target, and stands just shy of the government’s five-year average for this time of year of 92%. Exchanged deliverable stocks held steady, although last week they fell some 112,000 bales.The U.S.-China trade talks have ended, but will resume in Washington next week. Word is the two sides are actually putting some agreed upon conditions to paper, suggesting an actual trade treaty is beginning to take shape. Still it may be weeks, or months, before a final agreement is inked.For today, support for May cotton stands 75.52 cents and 75.10 cents, with resistance formed at 77.05 cents and 77.90 cents. Overnight estimated volume is 4,940 contracts.

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