DTN Morning Cotton Commentary          03/03 07:15

   Cotton Paralyzed by Helter-Skelter Markets

   Fears of higher energy and fertilizer costs, coupled with falling stock 
markets, has the cotton market in somewhat of a paralytic state. 

Keith Brown
DTN Contributing Cotton Analyst

   Financial, equity, and agricultural markets are going off in all different 
directions. Fears of higher energy and fertilizer costs, coupled with falling 
stock markets, has the cotton market in somewhat of a paralytic state.

   The U.S. dollar is sharply higher again Tuesday. Its rise is likely a 
flight-to-quality response to the Iranian situation. Currently, the Greenback 
has posted a new high for the year.    

   Spot March cotton saw 96 delivery notices Tuesday. Thus far, some 600 
delivery tenders have been issued. The delivery period runs through Monday, 
March 9.

   Crude oil rose some $4 today, soaring for a third session as the 
U.S.-Israeli conflict with Iran widens. At risk is the Strait of Hormuz, 
through which a fifth of the world's oil and liquefied natural gas typically 
passes. Tankers and container ships are avoiding the waterway after insurers 
cancelled their shipping policies.

   The Climate Prediction Center reported 84% of the U.S. cotton area is in 
some form of drought conditions. The 6- to 10-day forecast calls for much-above 
normal temperatures for the U.S. Cotton Belt, however, there are also 
above-normal chances for rainfall for much of the same area.

   Later in this week, traders will see weekly export sales on Thursday, 
rounded out by Friday's jobs data.

   Chart support for July cotton stands at 65.85 cents and 65.25 cents, with 
resistance around 67.00 cents and 67.25 cents. Tuesday morning's estimated 
volume is 16,860 contracts.

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




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