The cotton market is lower Tuesday as Monday’s crop condition numbers still had the nation’s crop at 60% good/excellent. That level is some 12 percentage points above the market ten-year average for historical crop ratings. In addition, the ratings for corn and soybeans indicated less deterioration than expected, thus the Chicago Grains are also lower.
Specific to cotton, the nation’s crop is rated at 60% good/excellent, off one percentage point from last week. The top producing states saw ratings high and low. That is, Texas is 54%, up 1%, Georgia is 66%, down 3%, Mississippi stands at 81%, up 4%, Oklahoma is rated at 41%, down 9%, and Alabama was unchanged at 78% good/excellent.
Weather-wise, West Texas shows virtually no rain for the next five days, while the Southeast is staring at the potential for copious amounts of precipitation.
For Tuesday, close-in support for December cotton is 88.80 cents and 87.90 cents, while resistance stands at 90.20 cents and 91.00 cents. The estimated morning volume is 6,654 contracts.