Crop report will show winter wheat plantings, which if heavy could lend support to cotton prices due to the competition for acreage.
As predicted, (and called for by this author), cotton prices came under the gun today. An opening drop, during which March fell to 6725, was followed by a respectable recovery as March returned to 6815 on short covering and bargain hunter interest in the back months. All this set the tone for later weakness and Cotton didn’t disappoint. As the close approached, selling was announced and values took another bearish ride, culminating with a close below 6700. This is why I’ve been suggesting buying puts. And it’s not over with yet.
Upland sales were reported at 60,700 running bales. Pima was 7,800 RB. So, export sales were again awful, but why should today’s numbers be any different? This is what I’ve been harping about, with no sales prices, (especially the March contract) need to drop. And drop it will, watch for any strength to get short cause specs are going to puke. Spreads will likely widen too.
Oh sure, the crop report may provide analysts with reason to buy the back months, but they cannot give you a good reason to buy March, so look out below.
Support: 6665, 6610, 6500? 6200?
Resistance: 6700-6740, 6810-6825, 6966-7000, 7035-55
Si quiere más información, por favor contáctenos,
Maria Aranda
El equipo de Brokers de Futuros USA
Email: [email protected]
TEL: 312-261-7395
Fuente: MF Global
©2007 Jurgens Bauer & Associates all rights reserved.
Jurgens Bauer
DISCLAIMER
La operación de futuros y opciones involucra riesgos de pérdida sustanciales, por lo que no es conveniente para todos los inversionistas. La información y opiniones contenidas en esta publicación, no constituyen, ni deben ser interpretadas para constituir una oferta de venta o la solicitud de compra de algún producto. La información objetiva incluida en este reporte ha sido obtenida de fuentes consideradas como confiables, aunque no esta garantizada en cuanto a su exactitud, ni tampoco en lo que respecta a su completo significado. No se asume responsabilidad con relación a ninguna declaración, así como en lo concerniente a cualquier opinión expresada aquí incluida. La confiabilidad relativa a la información en este reporte es solamente bajo riesgo del lector. Todos los comentarios están basados en opiniones.
