The cotton market is higher Tuesday morning as traders are seeing stout recoveries in financial and commodities markets. Monday saw steep, across-the-board sell-offs as the old familiar pain of COVID-19 emerged, spooking many investors.
Monday, USDA issued its weekly crop condition data. The report showed continued improvement in the U.S. cotton crop. The nation’s cotton crop stands at 60% good/excellent, up from 56% the preview week, 47% a year ago, and a 10-year average of 48%.
Texas was 52% good/excellent, up from 43% the previous week, 27% a year ago, and a 10-year average of 48%. However, the second largest producing state, Georgia, fell to 68% good/excellent from 74% the previous week.
In other news, Goldman Sachs slashed its 2021 growth forecasts for major Southeast Asian economies as the region grapples with a renewed surge in COVID-19 infections. The spread of the more transmissible Delta variant has pushed daily COVID cases to record highs in Indonesia, Malaysia and Thailand in recent weeks.
For Tuesday, close-in support for December cotton is 86.40 cents and 86.00 cents, while resistance stands at 88.10 cents and 89.00 cents. The estimated morning volume is 8,313 contracts.