DTN Morning Cotton Commentary          01/13 07:13

   Cotton "Steadies" In the Storm 

   The cotton market is slightly higher this morning amid all of the production 
"bloodletting" that occurred in the Chicago Grains yesterday. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is slightly higher this morning amid all of the production 
"bloodletting" that occurred in the Chicago Grains yesterday. Essentially, USDA 
bearishly tweaked virtually every supply-demand category for grains in the 
January WASDE, which likely discouraged cotton from trading better.  

   There are several key economic reports this week, including today's CPI 
(consumer inflation), Wednesday's PPI (wholesale inflation), and Thursday's 
weekly exports-sales and retail sales. The Fed will be assessing the data for 
future interest rate considerations.  

   With that, the Federal Reserve itself is under Department of Justice 
scrutiny for the cost overruns (now some $2.5 billion) for the renovation of 
its office building complex. 

   Crude oil is higher today, as there are heightened concerns surrounding 
major producer Iran, and potential supply disruptions overshadowed the 
prospect of increased crude supply from Venezuela. Traders are pricing in 
some price protection. The top political topics that are dominating the energy 
situation include Iran, Venezuela, Russia-Ukraine, and Greenland.

   Chart support for March Cotton stands at 6460 and 6385, with resistance 
hovering about 6560 and 6625. This morning's estimated opening volume is 11,689 
contracts.

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




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