December cotton is stuck in neutral as Hurricane Florence has/is making landfall. It has been suggested if North Carolina were to lose 25% of its crop, that amount would translate into a 200,000 bales reduction to the nation’s cotton crop.
However, whatever those eventual Carolina losses turn out to be, either more or less, they will not tally up until the October crop report. Until then, the market will have to suffer under USDA’s latest analysis which increased the 2018 crop some 560,000 bales to 19.68
In other news, the spat between China and the US seems to have no end. This week there was some optimism as the US made overtures to China concerning a new trade meeting, but as of this writing, no official announcement has been made.
Lastly, the 2018 harvest is gearing up for full swing, and soon mechanical pickers will be racing up and down the rows of southern fields. Typically, harvest can pressure prices lower into a final Fall Low.
Close-in support for December cotton stands at 8140 and 8105. Resistance sill be 8225 and 8337.