The cotton market is a tad lower Friday morning as traders prepare for USDA’s upcoming crop report. That data will be released at noon CDT Friday. Essentially, traders are anticipating a reduction in the size of the 2020 Crop. The top two reasons for any dial-down in production relates to unexpected fewer acres and the adverse weather now gripping Texas.
The government will also be reporting on foreign crops. Overall, it is expected both domestic and global stocks will suffer lower levels.
The grim field conditions of West Texas and Texas Panhandle seem to be intensifying. The 6-10 day and 8-14 day forecast indicate an even longer consecutive string of triple-digit days with near-zero chances for rain.
Tropical Storm Fay may deliver some 2-4 inches of rain to several mid-Atlantic states. However, the current path slants more towards the New England States, away from any major cotton producing area.
For Friday, close-in support for December cotton lies at 62.88 cents and 62.50 cents, with immediate resistance at 64.90 cents. The current estimated volume is 4,590 contracts.