Cotton Sees Friday Recovery

After posting a couple of life-of-contract lows this week, the cotton market is attempting to stage a short-covering. Of late, the market has been depressed by ongoing harvest pressure, the shutdown of the federal government and trade tensions with China.

The U.S. dollar is headed for its worst weekly close since July. Among its many detractors, the federal government shutdown has choked off the release of key macroeconomic data, making investors less certain of direction and confidence.

There are behind the scenes talks occurring between China and U.S. trade officials. In fact, Treasury Secretary Bessent is scheduled to speak to his Chinese counterpart today. Moreover, it’s still expected that Presidents Trump and Xi will meet in South Korea at the end of this month.

The 6- to 10-day weather outlook (Oct. 22-26) calls for above-normal temperatures for Texas, but normal readings for the Southeast and the Delta. Rain-wise, Texas looks to have slightly above normal chances, but the Delta and particularly the Southeast will have below-normal opportunities.

Daily chart support for December cotton stands at 63.25 cents and 62.50 cents, with resistance at 64.80 cents and 65.30 cents. Friday morning’s estimated volume is 9,906 contracts.

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