Putting Texas weekend rain possibilities momentarily aside, the cotton market is squarely focused on Friday’s supply-demand report. USDA will release its potentially market-moving findings at 12 p.m. ET.
Last month, the government cut the 2018 crop one million bales, which at that time, was thought to be a precursor to further reductions. That notion was reinforced by the scant rain and triple-digit temperatures suffered by West Texas.
However, the strong crops across the Delta, the Southeast and the mid-Atlantic states may prove to be something of an offset to whatever cuts USDA places on Texas.
In other news, the U.S. dollar is sharply higher fueled by an ever-growing currency crisis currently unfolding in Turkey. The Lira has lost 33% thus far in 2018. Turkey is a huge buyer of U.S. cotton.
Overnight estimated volume stands at 2,400 contracts traded. Close-in support for December cotton is $.8675 and $.86210, while resistance may be found at $.8920 and $.9000.