The cotton market is moderately lower Wednesday as it awaits inputs from Thursday’s weekly export sales report, as well as the third quarter GDP numbers. Combining both crop years, last week’s cotton export sales report showed some 400,000 plus bales were sold, with China as the top buyer of 322,000 bales. However, actual shipments were a lagging 117,000 bales.
The GDP data reflects all goods and services produced by the U.S. Economy on a quarterly basis. Thus, Q1 for 2021 revealed growth of 6.8%, while the Q2 was 6.5%, but Thursday’s estimates look to be a dismal 2.8% growth pace.
Weather-wise, rain will be sweeping across south Georgia Thursday, delaying harvest activities. However, the six to ten-day forecast calls for below normal precipitation across much of the Cotton Belt, while the 8 to 14-day specifically indicates below normal temperatures from central Texas to the Southeast.
For Wednesday, close-in support for December cotton is 107.50 cents and 106.00 cents, while resistance stands at 110.15 cents and 111.10 cents. The estimated morning volume is 6,010 contracts.