The cotton market is higher Monday morning on news that a third pharmaceutical developer is reporting a vaccine with a 90-plus percent effectiveness rate. That news comes on the heels of two other US-based companies which have reported similar results with their therapeutics. Today’s news has the Dow Jones up 200 points, and is lifting many other markets, including cotton, higher.
Monday afternoon USDA will issue its weekly crop progress report as it relates to the 2020 harvest. Last week, the government indicated the crop was 69% gathered, but afterwards there were several consecutive days of near-perfect weather across the Cotton Belt. Thus, some traders expect to see the harvest level above the 75% mark.
The ICE exchange reported 116 notices were tendered against spot December. There was only one company delivering with five stoppers. Two of those stoppers stood for the lion’s share of notices. December cotton is trading 100 higher this morning.
This is Thanksgiving week, meaning the cotton market will not trade Thursday with an abbreviated session on Friday. However, weekly export sales, normally out on Thursday, have been moved to Friday morning at 8:30 a.m. EST.
For Monday, support for March cotton stands at 72.20 cents and 71.90 cents, with resistance at 73.50 cents and 74.10 cents. The overnight estimated volume is 6,855 contracts.