December cotton rallied some 150 points on Friday, and another 60-plus points overnight before tailing off in a slightly lower trade. As of now, there have been no official estimates as to Michael’s devastation, but we are hearing a special survey may be done by USDA before its November Crop Report, but one can hear anything these days. President Donald Trump will visit the hardest-hit areas, and that will bring in additional video coverage to the nation.
Friday also saw USDA’s weekly sales and exports data. Those sales came in at 98,000 bales for the current season, and 142,000 for the next marketing season. As of Oct. 4, cumulative sales stand at 63% of the USDA forecast for 2018/2019 versus the five-year average of 45%. Friday’s Commitments of Traders report also showed noncommercial traders (speculators) were net long 56,700 contracts a decrease of 2,839 positions.
This week will be all about assessing the already obvious damage to the Alabama/Georgia Crop. Perhaps next week some intermittent harvesting will start back in those areas not totally wiped-out.
For Monday, support for December cotton stands at 7755, with 7940 and 8050 as resistance.