December cotton finished nearly two-hundred points higher as Hurricane Florence intensifies to Cat-4 status. Expectations are for the storm to make landfall on Thursday in the Carolina/Virginia area.
No doubt, the cotton production in those states are in grave danger. However, some attention will be given to USDA’s monthly supply-demand report on Wednesday at high noon. The current average estimate for the 2018 crop stands at 19.12 million bales, down from the previous 19.24 million.
As of Aug. 30, cumulative cotton sales stand at 61.6% of USDA’s 2018-19 forecast versus a five-year average of 35%. Although ahead of pace, trade war issues and currency problems may create longer-term bearish problems.
Monday’s estimated volume was 24,900 contracts.