After its late session recovery Tuesday, the cotton market is slightly higher Wednesday morning. All eyes are on Hurricane Sally and the potential for harm for the Southeastern cotton crop.
Although Sally is barely a Category 2 storm, it is expected to pour out copious amounts of rain and carry fierce winds marching across southern Alabama, into central Georgia, and lastly into South Carolina. USDA just reported Monday the affected states were about 50% bolls open, meaning those crops are vulnerable to yield loss.
Wednesday afternoon, the Federal Reserve will conclude its two-day policy meeting. The Fed is expected to continue to pursue lower U.S. interest rates. The U.S. dollar is lower this morning.
Thursday, USDA will issue its weekly export sales report at 8:30 a.m. EDT. Given all the rancor and political negativity, traders remain hopeful China will be a major participant. Of late, the U.S. has been critical of China’s alleged use of slave labor to work in textile mills. There has been some on-again off-again thoughts of banning certain Chinese apparel products from specific areas.
For Wednesday, close-in support for December Cotton lies at 65.70 cents and 65.40 cents with resistance at 66.90 cents and 67.00 cents. The current estimated volume is 3,798 contracts.