Even with a presidential visit and agricultural losses exceeding several million-plus dollars, the cotton market is walking with ankle-weights. The market traded both sides of unchanged overnight and hardly threatened the 7900 mark. Yesterday afternoon came the first “official word” on how bad the 2018 crop was damaged by hurricane Michael.
In its weekly crop condition/crop harvest data, USDA reported the crop stands at 35% good/excellent compared to last week’s 42% versus last year’s 58% good/excellent. The Georgia numbers were astounding with the crop rated 54% very poor/poor.
This was a crop which just last week was boasting 1500 to 1700 pounds per acre. This loss will carry a generational negative effect for this area.
Texas saw freezing temperatures and some snow in the northern areas. We have tried to make contact with several producers there but to no avail. Often a freeze is beneficial as it aids in the defoliation process; however for late planted fields, it may very well prove to be detrimental.
The Dow Jones is attempting to shore up its heavy losses. Its recent fall has been attributed to rising interest rates. Naturally, higher rates strengths the US dollar, which in turn is a big impediment to future cotton sales and exports.
For today, December cotton support is 7770 and 7680, while resistance lies at 7940 and 8000.