Cotton is 85 points lower on Macro fears.
Cotton futures rallied two cents from the low on Friday ahead of the close, probably spurred by option expiration in the May contract.
Traders now face first notices of delivery on May on the 24th of April. There were 7,010 bales of cotton certified for delivery this weekend, making the total available for delivery 456,559 bales.
This morning cotton futures are sharply lower, as are nearly all other commodity contracts, including the US Dollar. The pressure appears to be coming from a Chinese report of first quarter GDP of 7.7% vs. the 8% many had been expecting.
Although, reports that China is likely to reduce cotton acres and soybean acres in favor of rice and corn should be supportive.
This morning, cotton is trading 85 points lower.The US Dollar Index is down 15 points at 82.25.Crude oil is down $1.49 at $89.80.May soybeans are down 8 cents at $14.05.May corn is down 9 ¼ cents at $6.49 ¼.July wheat is down 14 ½ cents at $7.05.
We suspect the markets are setting themselves up for a “Turn Around Tuesday”.
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