The cotton market is lower midweek as it continues to weigh outside bearish influences. Several of those factors include rising COVID-19 infections, concerns about vaccine availability and distribution, and a lack of new stimulus funds from Congress. Additionally, the U.S. dollar is significantly weaker, but U.S. agricultural markets, such as cotton and grains, seem unfazed by that friendly fundamental. In fact, such a disappointment is a negative in and of itself.
December cotton remains in delivery and Wednesday there were an additional 17 notices tendered. Per usual Term Commodities issued, while SG Americas was the lone stopper. Thus far, there have been 382 deliveries placed against all various contract months for the crop year. December cotton expires on December 8.
Thursday at 8:30 a.m. EST, USDA will issue its next export sales report. Last week’s sales were a stout 354,000 bales. With news of reduced crops in Pakistan and internal political troubles with Indian farmers, U.S. sales may yet post another strong number.
Close-in support for March cotton is 71.05 cents and 70.00 cents, with resistance at 72.30 cents and 72.50 cents. The current morning volume is 9,094 contracts.