By admin       2018-12-12

The cotton market is higher Tuesday morning as it awaits the latest supply-demand data from USDA. That report is released noon Eastern time. The government slashed one million bales off the 2018 crop in November, from 19.5 to 18.5 million bales. However, since than time, much of the harvest has been hampered with heavy rains across the belt.In fact, after Tuesday’s number, trade would expect another reduction in January data, but let’s take them one at a time. The category to watch today will be exports. In November, USDA lowered exports to the point it neutered the bullish effect of that one million bale slice. The reasoning was if you can’t sell it, then supply doesn’t matter. In world data, look for reductions in the Indian and Pakistani crops, resulting in a lower world carryout.In other news, Brexit uncertainty regarding when and how England will depart the European Union still has European stock and financial markets unsettled. Yesterday, Prime Minister Theresa May called off Tuesday’s vote on her Brexit plan, as most thought it would be voted down. As a result, the Euro currency and British pound sunk, and the U.S. dollar zoomed higher. Also overnight, Indian stock and financial markets roiled after India’s central bank chief abruptly quit. The Indian rupee dropped sharply lower on the news.For cotton, Monday’s commitment-of-traders report (as of December 4) showed non-commercial traders net long 47,300 contracts, an increase of 4,000 contracts. This suggest the speculator may be coming back into the market.For today, close-in support for March cotton is 79.50 cents and 78.95 cents, with resistance at 81.85 cents and 83.80 cents.

Download App

# #

Member Login