The cotton market is bending slightly lower as there is a void of positive news Wednesday morning. However, certain comments from President Donald Trump Tuesday labeling China as cheaters would not seem to help in the negotiating cause. The Chinese will now watch Wednesday’s House impeachment proceedings with keen interest. They feel any weakness in President Trump’s national standing will strengthen their negotiating stance.
USDA reported the 2019 crop is 62% harvested in its delayed Crop Progress report of Tuesday. That pace is ahead of last year’s 53% harvested, and slightly above the five-year average of 59% gathered. Weather has been improving, accelerating harvest efforts, although some gathering activities may momentarily slow as a massive cold/freeze front came down deep into Dixie.
Thursday’s weekly sales and exports have been delayed till Friday. Currently, USDA has pegged exports at a 14-year high. Many traders believe that amount is unrealistic. Yet, sales essentially without China are running ahead of their five-year pace. Thus, if China were to re-enter the U.S. market, that number could be strongly challenged.
For Wednesday, support for December cotton will be at 63.50 cents and 62.00 cents, with resistance at 65.10 cents and 66.00 cents. Overnight estimated volume stands at 12,776 contracts.