Cotton Ends Higher on Weather Anxiety
The cotton market finished Friday’s session moderately higher as concerns of quality and quantity.
The cotton market finished Friday’s session moderately higher as concerns of quality and quantity. For several weeks now some portions of the U.S. Cotton Belt have been dealing with cool, cloudy and rainy weather. Much of these climate adversities have originated from previously named hurricanes and/or storms. To that point, such weather delayed full development of the crop. The results can be boll rot and/or seeds sprouting in the lint. Either way, quality is definitely at risk, while quantity loss may also be at hand. There are some producers fearing a surprise frost/freeze in the deep south during October. If such an event were to come to pass, and depending upon its scope and size, it would be a price game-changer.
The U.S. dollar continued its upward press Friday, trading to levels not seen since July 22. With President Trump experiencing positive gains in the political polls, and certain pharmaceutical companies indicating a viable vaccine is at hand, currency traders are flocking back into the long side of the dollar.
Next week, the market will see crop condition numbers on Monday, weekly exports-sales on Thursday and also on Thursday, it will be the start of a new month. October is considered to be the kickoff month of cotton’s traditional harvest window of October-November-December. Interestingly over the past several seasons the ultimate seasonal low came around Thanksgiving.
December cotton ended this week up 0.29 cent and is up 0.79 cent on the month. For the year, the market remains 4.41 cents lower.
December cotton closed at 65.95 cents, up 0.49 cent, March closed 66.66 cents, up 0.41 cent and December cotton finished at 66.04 cents, 0.22 cent higher. Friday’s estimated volume was 18,455 contracts.