DTN Cotton Open: Higher, Ignores Financials

    Photo: Texas AgriLife

    The cotton market is trading slightly higher Monday, despite the fact certain outside markets are sharply lower. Those influential markets include the Dow Jones, down some 600 points, as well as a strengthening U.S. dollar. Such volatility is rooted in China as it announced the formation of a watch list of U.S. companies being labeled unfriendly to the Chinese government over the weekend.

    This is in response to the Trump administration initiating action against two Chinese technology companies, TikTok and WeChat, as secretly gathering U.S. citizen’s personal information.

    Monday afternoon, USDA will release its latest update on the condition of the 2020 cotton crop. Traders are expecting some damage from Hurricane Sally to show. Government tabulators will also report on gathering progress for the 2020 crop.

    The CFTC reported certain money-managed speculators increased their net long position. As of last Tuesday, they had bought some 3,300 contracts swelling their net long position to 49,800 contracts.

    The six-to-ten day weather forecast is calling for above normal rainfall for the Delta and the Southeast, but below normal for Texas. However, east Texas is watching Tropical Storm Beta as it pushes towards the Texas/Louisiana coasts.

    For Monday, close-in support for December Cotton lies at 65.00 cents and 64.80 cents, with resistance at 67.00 cents and 67.50 cents. The current estimated volume is 3,995 contracts.

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    Send press releases to Ernst@Agfax.com.

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