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DTN Morning Cotton Commentary 08/07 08:59
Cotton Lower, Awaits Next Week's Data
Cotton is lower Friday morning as traders await next week's market data from
USDA.
Keith Brown
DTN Contributing Cotton Analyst
Cotton is lower Friday morning as traders await next week's market data from
USDA. That information will include Monday's latest condition numbers, which
ought to indicate further deterioration of the 2020 Crop, Wednesday's monthly
supply-demand report on the 12 at 12:00 p.m. EDT, Thursdays weekly sales and
export numbers, and then on Friday reportedly, trade negotiators from China and
the US are set to "review" the Phase One deal. There will be a ton of data for
the market to digest.
Friday's jobs report was better than expected. Analysts were looking for
non-farm jobs to come in at 1.48 million, but the number was 1.76 million. The
financial markets responded positively, but the TikTok ban by the Trump
administration has upped the ante on the US-Sino relationship. This move is
casting a negative shadow across all markets.
Adverse weather continues to grip much of the cotton belt. West Texas has
especially suffered all summer, and even now, her updated weather outlooks
continue to call for hot and dry conditions to persist. However, even if the
2020 crop is greatly reduced, the ultimate concern lies with demand.
For Friday, close-in support for December cotton stands at 63.70 cents and
63.45 cents, with resistance at 65.05 cents and 65.50 cents. The current
estimated volume is 5,005 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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