Following Monday’s lower session, the cotton market is higher Tuesday as it starts a new month of trading. Monday saw many markets in decline as end-of-the-month squaring ruled the day, but with that event over, many markets, including cotton, are strongly recovering this morning.
Spot December saw ten more deliveries today, with Term Commodities the issuer and SG Americas as the stopper. By rough count, there have been about 230 notices tendered against the December contract. That contract expires on December 8.
USDA reported the 2020 crop is 84% harvested up from 77% the previous week, 82% a year ago and ahead of the 10-year average at 79%. Specifically for the top-producing states, Texas was 82% complete (+8%), Georgia 80% (+7%), Oklahoma 79% (+9%), Mississippi 98% (+3%), and Arkansas 100% (+1%). Monday’s report will be the last for 2020. Crop progress reports will resume April 2021.
The CFTC issued its delayed Commitments of Traders report Monday and its data showed managed money traders were net buyers of 3,720 contracts of cotton for the week ending November 24. This action increased their net long position to 61,285 contracts. Non-commercial & non-reportable traders were net buyers of 3,697, increasing their net long to 85,864.
Close-in support for March cotton is 72.00 cents and 71.65 cents, with resistance at 73.50 cents and 74.00 cents. The current overnight volume is 4,707 contracts.