Cotton hit a positive note this past week in the export sales report, but we will need more. Too, there is another positive note that merits a few comments as well.
The market continues to fight to hold the cent level, slipping below 67 cents on occasion and then easing just above 69 cents just to tease us into thinking a bull is somewhere in the mix.
However, we have cautioned on several occasions that the March and May contracts are only teasing us as the bull will not surface until more demand can be uncovered. The long held and frequently challenged The market is building price resistance above Thus, the battle will continue within the very narrow two cent cent range. Of course, it should be expected that price movement on either side of the range should be expected.
Yet, note that a close below The weekly export sales report showed net sales of upland at a marketing year high of , bales. If fact, the past month has seen very good sales. Two other countries were also double-digit buyers β Peru 11, bales and China 10, Twenty countries purchased U. I would be tempted to do that now, except mills continue to complain about very poor yarn orders. Too, these sales were made at the very low-price level of cents.
Yet, as previously stated, market bullishness must begin somewhere. However, a move to cents will imply demand is stronger than I have advised you. However, actual shipments of cotton remain poor.
