Cotton market is trading both sides of Monday’s close as it awaits different market-moving news. To that end, traders are assessing the Zoom call between Biden and Xi, but so far there was very little said about international trade.
Monday afternoon USDA issued its crop harvest update. Basically the U.S. crop is 65% harvested, from 55% of the previous week, but still slightly behind the ten-year average of 67%. Texas was 60% harvested versus 57% average, while Georgia and Mississippi lagged 55% versus 68% average, and 83% to a 94% average respectively.
Last week’s Commitments of Traders from the CFTC showed managed money traders were net buyers of 1,486 contracts, extending their net long position to 79,824 contracts. Their peak bullish position was some 97,000 contracts from early October.
For Monday, close-in support for December cotton is 116.20 cents and 115.00 cents, while resistance stands at 119.20 cents and 120.10 cents. The estimated morning volume is 5,182 contracts.