The cotton market is lower Monday morning as protests in Hong Kong are intensifying. To that end, protesters have reportedly shut down the international airport. Many financial and commodity markets are lower today fearing reprisals from the Chinese military.
At 11 a.m. CDT, USDA will issues its August Crop Report. Expectations are calling for lower exports, and higher ending stocks. Additionally, world consumption may be reduced, thereby increasing world stocks. Last month saw global carryout above eighty million bales.
The cotton market has touched a three-year low and with that move, speculators are record short. In fact, the most recent data has managed money speculators projected at 47,500 contracts net short, or 4.70 million bales.
It has been a hot weekend for the cotton belt. Texas and Georgia have been suffering extreme hot temperatures with little or zero rainfall. USDA will release its crop condition report Monday morning. Last week showed conditions in Texas taking a backwards step.
For today, support for December cotton is 57.86 cents and 57.50 cents, with resistance at 59.90 cents and 61.60 cents. Overnight estimated volume is 2,311 contracts.