Thompson On Cotton: Caught In A Squeeze
April 10, 2023
For most of the week, the market traded aimlessly looking for guidance. Renewed recession fears, early on, forced a decline from the previous week’s highs. Even so, it found firm support at 81 cents. It did finish strong, however, on some encouraging global news to settle the week relatively unchanged. May futures closed at 83.02 for a gain of 24 points followed by December futures finishing at 83.42 for a small loss of 18 points. Its ability to build on Thursday’s move will be tested as a host of key market indicators are scheduled for release this week.
As mentioned, news from abroad was positive. China’s highly anticipated Post Covid economic recovery does appear to be real. Their manufacturing index expanded once again for the third consecutive month. On an even more encouraging note, the Saudis announced they would aid Pakistan in acquiring an IMF loan. This could relieve their present financial troubles and further open up trade.