The cotton market is moderately lower Tuesday morning as the 2021 harvest begins to unfold. Monday afternoon USDA reported the crop was 28% gathered versus last week’s 20% complete. However, the 10-year average stands at 33% harvested for this time last year.
Additionally, the data indicated the crop was rated 64% good to excellent, unchanged from the previous week, but well ahead of the last year (40%), and the 10-year average of 43% good to excellent.
Weatherwise, the five-day forecast purports drier conditions, with the six-to-10 day and the 8- to 14-day outlooks indicating below normal precipitation for central and west Texas. However, the Delta and the Southeastern are pegged to see above normal chances of rain.
In international news, China allegedly launched a super-sonic missile over the weekend, which caught the Biden Administration by complete surprise. Such is capable of carrying a nuclear warhead and can travel at five times the speed of sound. They can fly much lower to the ground than conventional ballistic missiles, which makes them harder to track.
In addition, 10 naval vessels from China and Russia have sailed through a strait separating Japan’s main island and its northern island of Hokkaido, the Japanese government said Tuesday. Of late, China appears to be more militarily aggressive. Such action could alter U.S./Sino relations and therefore trade.
For Tuesday, close-in support for December Cotton is $1.0500 and $1.0350, while resistance stands at $1.1000, and $1.1150. The estimated morning volume is 7,622 contracts.