By admin       2018-11-27

The cotton market sloughed off 198 deliveries against spot December to close demonstratively higher. In fact, spot December was 200-plus higher, while front leader March Cotton was 100-plus higher. The market is in the seasonal window to post its 2018 harvest low and many analysts believe it has done so.To that end, March cotton never violated its October 1 low, and has strong technical support at 50.60 cebts. That price reflects the monthly low from last April and this October. It has been reported total open interest in cotton has reach its lowest level in over a year. Such a number may indicate speculator’s action of liquidating their long position may be nearing an end.Also bullishly influencing the market are the many harvest delays occurring across the Belt. Last night South Georgia was hit with thunderstorms, keeping producers from their appointed tasks. To that end, Monday afternoon USDA will report on the progress of the 2018 harvest.In the grand scheme, the market is nervously anticipating this weekend’s G-20 meeting between the U.S. and China. Any positive movement on the trade dispute ought to cast a bullish reflection on the international cotton trade.Beyond that event, USDA will soon issue its monthly crop report in early December. It is widely thought the agency will again reduce the domestic crop.Monday’s estimated volume was 18,100 contracts. spot December settled 77.40 cents, 2.48 cents, March cotton was 78.58 cents, up 1.36 cents and December 2019 finished 76.97 cents, up 0.42 cent.

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