Today in Cotton: 4-4-2014 PM

Ralph_Stanley

Steve Tyler said it best: it’s the same old story, same old song and dance, my friend. Nothing new to report in regards to cotton apart from what was shared this morning. May, July and Dec settled above  all levels of support, including their 5, 10 and 20-day moving averages.  I mentioned earlier in the week and continue to believe that if the USDA lowers the production number on the 9th, the market is susceptible to a strong push higher. Lowering U.S. production is likely as the recent ginnings total showed a 2.5% smaller crop.  The Commitment of Traders report released this afternoon didn’t show much change; merchants and producers remain short while managed money specs endure the long side.

 

 

COTTON NO. 2 - ICE FUTURES U.S.                                                                                                                  Code-033661
Disaggregated Commitments of Traders - Futures Only, April 1, 2014                   
-------------------------------------------------------------------------------------------------------------------------------------------------------------
     :          :                                              Reportable Positions                                                      :   Nonreportable
     :          :  Producer/Merchant/ :                                :                                :                                :     Positions
     :   Open   :   Processor/User    :          Swap Dealers          :         Managed Money          :       Other Reportables        :
     : Interest :   Long   :  Short   :   Long   :  Short   :Spreading :   Long   :  Short   :Spreading :   Long   :  Short   :Spreading :   Long  :  Short
-------------------------------------------------------------------------------------------------------------------------------------------------------------
     :          :(CONTRACTS OF 50,000 POUNDS)                                                                                            :
     :          :    Positions                                                                                                           :
All  :   183,893:     7,514    120,134     51,083     10,592      1,534     70,075      9,168     12,860     14,525     11,347      7,522:   18,780    10,736
Old  :   139,300:     3,540     89,994     36,739      9,137        436     60,554     11,134      6,374     14,487     10,086      3,056:   14,114     9,083
Other:    44,593:     3,974     30,140     15,381      2,492         61     15,731      4,244        276      4,206      5,429        298:    4,666     1,653
     :          :                                                                                                                        :
     :          :    Changes in Commitments from:       March 25, 2014                                                                   :
     :       583:       640      1,186      1,830       -119       -662     -1,425      2,664         79        180     -2,722       -398:      339       555
     :          :                                                                                                                        :
     :          :    Percent of Open Interest Represented by Each Category of Trader                                                     :
All  :     100.0:       4.1       65.3       27.8        5.8        0.8       38.1        5.0        7.0        7.9        6.2        4.1:     10.2       5.8
Old  :     100.0:       2.5       64.6       26.4        6.6        0.3       43.5        8.0        4.6       10.4        7.2        2.2:     10.1       6.5
Other:     100.0:       8.9       67.6       34.5        5.6        0.1       35.3        9.5        0.6        9.4       12.2        0.7:     10.5       3.7
     :          :                                                                                                                        :
     :          :    Number of Traders in Each Category                                                                                  :
All  :       255:        32         52         20          8          8         86         17         33         31         34         29:
Old  :       243:        18         47         19          9          .         79         21         26         25         35         19:
Other:       146:        23         38         19          6          .         31          9          .         15         21          9:
     :-------------------------------------------------------------------------------------------------------------------------------------------------------

May Daily Chart

ECTK14 ~ Daily_04042014_021651pm

 

July Daily Chart

ECTN14 ~ Daily_04042014_022749pm

 

Dec Daily Chart

ECTZ14 ~ Daily_04042014_022943pm

 

Today’s Song Recommendation

WRITTEN BY Alyssa Badger

Alyssa started her career in 2008 at the Board of Trade managing a firm that had a primary focus in grains. The nucleus of her position centered around order entry and research development; from there, Alyssa's enthusiasm for commodities continued to grow and expand. This enthusiasm lead her to move to West Texas and assist in hedging for the largest originator of U.S. cotton to textile mills worldwide. Alyssa has now settled back in Chicago as a Trading Consultant for Highground Trading, Inc. Contact Alyssa