ICE cotton futures prices rose on Thursday from a one-week low, as investors opened short positions ahead of weekly USDA export sales data.
- ICE May: closes at 83.20 c/lb, up 213 points;
- ICE July: closes at 83.47 c/lb, up 218 points.
There is some support for the cotton market by speculators because “Cotton is in a state of laziness” as the market heads towards the Easter weekend.
For the week ended March 30, sales and export shipments for the total UPLAND + PIMA were significantly lower at around 169,000 bales and 252;000 bales, respectively. China and Vietnam are once again the biggest buyers.
Oil prices steadied while world stocks tumbled as markets worried about a worsening economic outlook.
The dollar index (DXY) holds near two-month lows after weak data supported the view that the Federal Reserve may not need to raise interest rates further.
- Medium and long-term expectations
The market will now focus on weather reports (especially in West Texas), crop progress and the April WASDE Supply – Demand report.
ICE May contract is forecast to encounter resistance near 85.00 – 86.50.00 and 90.00, and support near 80.00 and 75.00 – 77.50 in short to medium term.
