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Cotton fundamentals remain bullish but are in a holding pattern as we wait on US planting weather and Covid concerns in India and Pakistan to clear . Demand for US cotton remains strong but it’s the drought in West TX that continues to escalate and if we don’t get a rain in the next 30-45 days you may be see record acre abandonment, record abandonment will require severe demand rationing and in the backdrop of massive commodity inflation…pinpointing the price at which demand destruction starts becomes difficult to quantify. 97.35 has been resistance since 2012, I believe if we lose the WTX crop due to drought in the next 45 days we will break that resistance and open the door to much higher prices.
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