DTN Cotton Open: Sharply Higher Ahead of Reports

The cotton market is trading significantly higher as it anticipates USDA’s acres data on Friday and the Trump/Xi meeting on Saturday.

To the former, industry expectations see 2019 acres at an average 13.819 million. The range of guesses run from 13.48 to 14.30 million. This number is slightly higher than the planting intentions of last March, which were 13.78 million acres. However, even though the month ends this Friday, some states have yet to fully complete their planting efforts, and the calendar may not permit them to finish.

To the latter, Mr. Trump and Mr. Xi are scheduled to meet this Saturday in Osaka, Japan. Hopefully, they can find a graceful way to rejuvenate the broken trade talks to end the eighteen month trade war. There have been some very positive comments on both sides.

Technically, the trend of the trade is down, but recent sessions with low volumes may be a precursor to a reversal. Some analysts believe small volume days unfolding at the low side of a major decline suggests speculative selling is waning. Both the month and quarter end this Friday.

For today, support for December Cotton is 65.70 cents and 64.70 cents, with resistance at 67.15 cents and 67.90 cents. Overnight estimated volume is 5,300 contracts.

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