By admin       2018-08-28

December cotton is moderately higher this morning, as it attempts to balance its oversold condition as the month ends. With the three-day Labor Day weekend approaching, short-sold speculators are feeling the need to buy back their positions, while other speculators are bottom-fishing for an expected late season rally into September. That September rally is part of a seasonal behavior often reflecting developmental stress on the west Texas crop. Although much of the Texas dry-land crop is zapped, there remains the possibly of a decent irrigated crop. However, for that development to occur, a late season rain is needed. The current 6 to 10 day forecast has Texas with below normal rainfall and above normal temperatures. In other news, some pink boll-worn infestation has been reported in India. Last year, this pest reeked havoc on producers, causing the government to suspend some exports. Also today, USDA will announce the details of a tariff-aid package first announced in July. Close-in support for December cotton is found at 8110 and 8060, with resistance at 8380 and 8405.

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