Cotton Sees Post-Holiday Increase

The cotton market is slightly higher Friday, as the trading session will be abbreviated, and likely low volume. In addition, there is a major computer outage in Chicago which has halted trading in many financial and other commodities markets.

In observance of the Thanksgiving Holiday, the ICE Exchange initiated cotton trading Friday at 8 a.m. EST and will close early at 1:30 p.m..EST

Spot December is in its delivery period, but there were zero notices issued for Friday. Thus far, the total notices tendered stand at 171 contracts. Delivery runs through Dec. 7.  

The CFTC will publish its regular Commitments of Traders report this afternoon at 3:30 p.m. EST. Its previous catch-up release on Wednesday showed managed-money funds posted a new record net-short position in excess of 80,000-plus contracts.

The 6- to 10-day forecast (Dec. 3-Dec. 7) shows slightly above-normal temperatures for Texas and the lower Southeast. However, the Delta will experience much-below normal readings. Rain-wise, Texas will have slight opportunities, while the lower Delta, and Southeast are set to have just above-normal chances.     

Daily chart support for March cotton stands at 63.60 cents and 63.10 cents, with resistance at 64.70 cents and 65.20 cents. Friday morning’s estimated opening volume is 565 contracts.

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