DTN Closing Cotton 09/24 13:58
Cotton Lower in Listless Trade
December cotton closed slightly lower Monday on estimated volume of 15,000
By Keith Brown
DTN Cotton Contributing Analyst
December cotton closed slightly lower Monday. Estimated volume was 15,000
contracts traded. News of China's cool shoulder towards a potential trade
meeting with the U.S. this week quickly had the ICE futures playing defense
earlier in the session. In fact, for a moment the December market appeared as
if it was going violate last week's low of 7790. However, bullish speculators
emerged and helped steady the trade. Still, Monday's trading range amounted to
less than 100 points. Although the 2018 cotton harvest is beginning to unfold,
most producers across the South are currently concentrating on gathering their
peanut crop. Soon enough, however, cotton harvest will bring in hedge-type
selling. Then, cotton's pipeline fills, and speculators may decide to lighten
their bullish load some more. Seasonally, there have been some epic lows seen
in past cotton markets during October-November.
This afternoon at 4 p.m. EDT, USDA will release its latest crop harvest/crop
condition data. It is the latter part of that report traders are keenly
interested, as they hope to see how much damage befell the mid-Atlantic states.
Weather-wise, the six-to-ten day U.S. forecast has much of the cotton belt
with above-normal temperatures and below-normal rainfall. Internationally, the
Punjab province of India is inundated with copious amounts of rain, damaging
some of that crop.
December cotton settled at 7858, down 55; March was 7896, also down 55; and
December 19 finished 7618, down 42.
Keith Brown can be reached at firstname.lastname@example.org or by calling
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