Cotton Market Holds Steady

Not breaking nor rallying, the cotton market is slowly walking across its sessions. Still, it is trying to build some technical value about the 64.00 cent level. Despite the continued government shutdown, some private industry analysts suggest that the 2025 crop is over 50% gathered.

The National Hurricane Center says that Tropical Storm Melissa will likely develop into a Category 1 hurricane soon. However, the agency says she will be no threat to the Gulf of Mexico (Gulf of America) nor the U.S. eastern seaboard.

The energy complex is higher for a second day amid hopes that a U.S. trade deal with China and India will come to fruition. President Trump said he spoke with Indian Prime Minister Narendra Modi on Tuesday, adding that Modi assured him India would be limiting its oil purchases from Russia. Investors are also closely watching the progress of U.S.-China trade talks as officials from both countries are set to meet this week in Malaysia.

We note several important headlines for subscribers to know. The U.S. government is in its 22nd day of partial shutdown, with no end in sight. Chicago grains are mixed, while U.S. stocks are flat. The U.S. dollar is stronger, and crude is higher. As mentioned, India may agree to reduce Russia oil imports. Gold is sharply lower. Trump’s meeting with Putin has been canceled. Also, the Trump and Xi meeting remains questionable. The U.S. government plans to initially give U.S. farmers some $3 billion in aid and reopen FSA offices to facilitate farm payments/loans.

Daily chart support for December cotton stands at 63.82 cents and 63.25 cents, with resistance at 64.80 cents and 65.35 cents. Wednesday morning’s estimated volume is 4,935 contracts.

Keith Brown can be reached at commodityconsults@gmail.comor by calling (229) 890-7780.