Cotton is lower Friday morning as traders await next week’s market data from USDA. That information will include Monday’s latest condition numbers, which ought to indicate further deterioration of the 2020 Crop, Wednesday’s monthly supply-demand report on the 12 at 12:00 p.m. EDT, Thursdays weekly sales and export numbers, and then on Friday reportedly, trade negotiators from China and the US are set to “review” the Phase One deal.
There will be a ton of data for the market to digest.
Friday’s jobs report was better than expected. Analysts were looking for non-farm jobs to come in at 1.48 million, but the number was 1.76 million. The financial markets responded positively, but the TikTok ban by the Trump administration has upped the ante on the US-Sino relationship. This move is casting a negative shadow across all markets.
Adverse weather continues to grip much of the cotton belt. West Texas has especially suffered all summer, and even now, her updated weather outlooks continue to call for hot and dry conditions to persist. However, even if the 2020 crop is greatly reduced, the ultimate concern lies with demand.
For Friday, close-in support for December cotton stands at 63.70 cents and 63.45 cents, with resistance at 65.05 cents and 65.50 cents. The current estimated volume is 5,005 contracts.