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DTN Closing Cotton            03/25 13:33

   Cotton Closes Higher in Seasonal Move 

   The cotton market finished sharply higher Monday driven by bullish 
technicals and its historical seasonal trend.

By Keith Brown
DTN Cotton Correspondent

   The cotton market finished sharply higher Monday driven by bullish 
technicals and its historical seasonal trend. By most measurements, many of the 
widely-followed chart indicators have turned bullish, which have encouraged 
previously short-sold speculators into short-covering buyers. Into its February 
low, we were remembering speculators were nearly record net-short. Thus as 
those aforementioned indicators consisting of moving averages, stochastics, 
cycles, and the like are definitely beginning to show the bearish spec the err 
of his ways. 

   Additionally, this is the time of year cotton's seasonal begins to tug 
prices higher. Typically, last season's production is becoming exhausted 
(tighter), which is bullish to the old crop, and there is uncertainty of 
getting this year's new crop planted. The latter is considered bullish to the 
new crop. Of course, if the market were to see fewer intended acres for 2019, 
plus continuing adverse weather, then the dynamics for the market would be all 
the more positive. 

   Lastly, and this may be a reach, with the Mueller report indicating no 
collusion between the President Trump and the Russians, he should stand with 
greater political clout with the Chinese, in that he, Mr. Trump, will not be 
going away any time soon. Thus, the Chinese may have better incentive to do a 
deal. 

   As always we will be on the lookout for a Turnaround Tuesday, but seemingly, 
the cotton market has "changed colors."

   May cotton settled at 77.73 cents, up 1.15 cent, July finished at 78.51 
cents, up 0.94 cent, and December closed at 75.73 cent, up 0.43 cent. Monday's 
estimated volume was 35,000 contracts. 

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


(BE)

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