By admin       2019-05-29

The cotton market is higher Tuesday morning as high heat and dry conditions are plaguing the Southeast and Mid-Atlantic states. For the past few days the Georgia thermometer has registered above 100 degrees, with literally no rain in sight.This coming weekend has rain chances at only 30% for Friday and Saturday, but the temperatures will remain well into the upper nineties.The flip-side of the weather is Texas. It continues to receive copious amount of rain. In talking with a West Texas producer just last night, he shared how one farm was zapped with 7 inches of precipitation! It would appear the 2019 Crop is currently going backwards in several key areas.Tuesday afternoon, USDA will release the latest planting progress data. However, it may be slack. That is, we know general planting has halted across south Georgia, and other states may be facing replanting due to other weather adversities.Due to the Memorial Day holiday, weekly sales and exports will be delayed until Friday. To that end, if traders are sensing some sort of bottom has been established, cash merchants may be encouraged to cover their old crop needs all the more.As the market trades out this last week off the month of May, it is very much aware of the potential effect the month of June may carry.That is, besides the normal sales and exports data every week, there will be a key monthly supply-demand report June 12, USDA’s Planted Acres June 30, G-20 meeting in Japan with Trump and Xi at the end of June, option expiration for the July contract June 14, as well as July’s delivery which starts June 24.In addition to all of these events and numbers, weather will remain an all-important fundamental component.For today, support for December cotton stands at 66.60 cents and 65.85 cents, with resistance at 69.40 cents and 70.00 cents. Overnight estimated volume is 6,880 contracts.

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