Although showers were in the near-term forecast for cotton producing regions of the mid-southern and southeastern US states over the past weekend, precipitation over the mid-southern states was much heavier than expected.
Dec has now given up 1114 points over the last 39 trading days; 417 points over the last 5 trading days.
For tomorrow…
Dec lost 134 points today, post the dissemination of an acreage report that relayed estimated acreage well above trade expectations, to settle at 73.51. Today’s settlement marks new intraday and settlement lows for the current downtrend, as well as new two year lows.
Technical sentiment for Dec remains bearish, although the market is in an oversold condition.
For tomorrow…
The USDA’s June 30 acreage report revealed an estimated 11.4M acres were planted to cotton this season. Upland acreage was estimated at 11.2M acres and ELS at 1.78M acres.
Today’s estimates were far above our estimate, and above nearly all published pre-report estimates.
We will provide a more thorough breakdown of acreage on this afternoon’s reports.
Flood and flash flood warnings have been issued for cotton producing areas of Eastern Arkansas and West Tennessee; flooding is also possible…
Dec gave up 223 points this week, trading below a two year low before finally closing at 74.85 for the week. Dec has been a loser 7 of the last 8 weeks, giving up 909 points over the span.
The MACD and Hi/Lo technical indicators are returning weekly sell signals while the RSI, ROC, CCI, Stochastic, Stochastic RSI and Williams’ %R technical indicators are retuning oversold signals.
For next week…
