Cotton Comment

Cotton closed higher with December ending near 77 cents. Strong export demand is a rallying point as we move toward harvest. A crop of more than 19 million bales is expected as conditions generally remain favorable. The Texas crop is expected to be very good while some areas in the Midsouth and southeast are facing dry conditions and heavy insect pressure. Exports are projected to be more than 14 million bales with China a major importer. A December close above 77 cents will open the market for a retest of recent highs near 80 cents.