Cotton News – On Any Day Of The Week, Really
-Cotton closing was mixed this week with the nearby contracts closing lower.
-New season months, however, closed higher.
-Major contract rolling will happen next week so watch out for increased volatility.
-USDA plantings report later this week should put more in perspective but I would expect lower numbers.
-West Texas has been unusually wet the last week but this should be offset by good rains in the southeast.
-China and India may see large rains as monsoon season begins in a month.
-China is talking of auctioning more cotton this month so look for downward pressure even as demand has strengthened.
-Cotton stocks have been higher worldwide but we have seen a recent dip in the USA based on stronger mill use.
-Polyester prices are up 2% on the week.
-India is talking again about limiting exports in an official release this last Friday.
-Official sales for the week are up 10%.
-Trends are down.
-Support is at 60.
-Resistance is at 70.
Did you get anything out of that?
Do you now know where prices are headed?
Do you now know how much they are headed up or down?
Or, when a move in prices will occur?
If you are hedging, do you now know the correct decision to make?
If you are speculating, do you now know where to buy or sell, and where to exit the trade?
Are you now in a better position than you were before you read the commentary?
Was reading the commentary a waste of time?
Do you buy into the information game because it helps you, or is it to make yourself feel better?
My point is this: More information is not always better.
And sometimes, the price is all you need.