DTN Morning Cotton Commentary          04/30 07:53

   Cotton Nervously Teeters

   The cotton market is somewhat lower Wednesday, despite already falling for 
three consecutive sessions, amid poor economic news from China. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is somewhat lower Wednesday, despite already falling for 
three consecutive sessions, amid poor economic news from China. In addition, 
the market technical picture still projects a sideways to "wonky" trend.

   Spot May cotton saw no deliveries Wednesday. Thus far, there have been nine 
notices issued by StoneX Financial. The stoppers were Macquarie and SG 
Americas. Delivery period will run through May 7.

   Overnight, China's PMI and manufacturing data showed contraction with a 
reading of 49% expansion. Anything below 50% is considered "narrow." Thus far, 
many U.S. markets are playing more defense, such as Comex Copper with its 
30-cent session decline.

   Wednesday, traders will see new Q1 2025 GDP data, plus Personal Income. Then 
Thursday, May 1, there will be several key economic reports such as a new round 
of export sales for USDA and Labor's jobless claims. Lastly, is Friday's big 
jobs report.

   Crude oil continues to weaken in the face of Trump's tariff policies and 
concerns of slowing global economic growth. Some analysts suggest that the U.S. 
tariffs will likely push the world economy into a recession later this year. 
China, hit with the steepest tariffs, has responded with its own levies against 
U.S. imports, stoking a trade war between the top two oil-consuming nations.

   For Wednesday, close-in chart support for July cotton stands at 65.75 cents 
and 65.00 cents, with resistance at 67.25 cents and 67.85 cents. This morning's 
estimated volume is about 6,428 contracts.

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




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