The cotton market is starting its last week of June lower as the market prepares for Tuesday’s planted acres report from USDA at noon EDT. The average industry estimate stands at 13.15 million acres, compared to the previous March planting intentions of 13.70 million acres.
Of course, despite the increasingly adverse conditions now occurring across Texas, the market remains in a depressed state. Rising infections and increased worry about lockdowns continues to slow the reopening of the U.S. economy and therefore cotton consumption is dramatically off, both domestically and worldwide.
Cotton’s price has declined some 16% so far this year.
There were 83 deliveries issued against the spot July Monday. The notices were tendered by Morgan Stanley and were stopped by SG Americas. Monday’s number brings the total delivery to 302 contracts. July cotton will expire on July 9.
Monday afternoon, USDA will issue its weekly crop conditions report. Currently, the situation in Texas is worsening. Last week the Texas crop was rated 40% very poor to poor. Since then there has been little rain, and the outlook for hot-and-dry conditions extends into July 12.
For Monday, close-in support for December cotton lies at 58.90 cents and 58.55 cents, with resistance at 60.10 cents and 61.20 cents. Current estimated volume stands at 3,190 contracts.