DTN Morning Cotton Commentary          01/14 07:21

   Precious Metals Push Cotton 

   The cotton market is up Wednesday, being somewhat influenced by the all-time 
highs of gold and silver. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is up Wednesday, being somewhat influenced by the all-time 
highs of gold and silver. Although there are many drivers for the metals, their 
vertical rise seems to be lifting all commodity boats Wednesday. Moreover, 
given cotton's recent positive supply-demand report, some traders feel its 
nearly two-year bear market is coming to an end. 

   Crude oil is up for its fifth consecutive session as fears of Iranian supply 
disruptions dominate the trade. There are massive internal protests occurring 
in Iran, as regime change is in the air. With that, the U.S. and Iran are 
trading threats. Tehran warned U.S. allies in the Middle East it would strike 
U.S. bases on their soil if Washington attacked Iran. Some personnel were 
advised to leave a U.S. military base in Qatar.

   Thursday at 8:30 a.m., USDA will issue its weekly export sales report. Last 
week, sales amounted to 98,000 for the current crop, well below the 134,000 
sold in the previous week. Thus far, cumulative sales are 59% of the USDA's 
forecast versus its five-year average of 76% for this point in the marketing 
year. Last week's shipments totaled 154,036 bales, up from 140,723 the prior 
week.

   Friday, CFTC will update its Commitments of Traders information. Last 
Friday's numbers showed managed-money funds had net-bought some 1300 positions, 
reducing their net-carry to 47,700 contracts.

   Chart support for March cotton stands at 64.70 cents and 64.00 cents, with 
resistance hovering about 65.35 cents and 65.75 cents. Wednesday morning's 
estimated opening volume is 9,875 contracts.

    

   Keith Brown can be reached at commodityconsults@gmail.com or by calling 
(229) 890-7780.




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