By admin       2018-11-01

After Monday’s massive down day, December cotton is barely hanging on to support. However, with Wednesday being the last day of the month, hopefully the market will get treated and not tricked on the All Hallows’ Eve. Looking into November, there are several forthcoming events which might help not only to solidify the market, but hopefully turn prices north. Included in those are next week’s midterm elections. We are thinking a conservative victory would strengthen the Administration’s hand with China when it comes to trade talks. Next, USDA’s supply-demand data on November 8. Conventional wisdom is thinking a decisive reduction in the crop must happen. Lastly is the G-20 meeting in Buenos Aries, where President Trump is set to meet with President Xi to hammer out a possible trade solution. For this week there will be Thursday’s weekly sales and exports data. Of late, those reports have been puny, but understandably, the U.S. export industry is undergoing huge pushes and pulls. On Friday, the Labor Department will issue its monthly jobs data. If that is a big number, expect the Federal Reserve to maintain upward pressure on the U.S. dollar, which will not bode well for cotton exports even if China comes back into play. Support for December cotton lies at $76.30 and $75.35, while overhead resistance awaits at $77.75 and $78.35.

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