Cotton Trades Listlessly on Little News

The cotton market continues to listlessly trade, as the lack of market-moving news remains absent. The U.S. government’s shutdown has entered its seventh day, with political stubbornness holding the markets essentially hostage.

The Trump administration is expected to announce a plan to bail out U.S. farmers as early as today. The initial outlay could potentially total some $15 billion. Yet, the plan may be difficult to roll out as the ongoing shutdown prevents the necessary Congressional action needed to approve such a large payout.

As previously mentioned, the shutdown will delay Thursday’s export sales report, the October WASDE, and Friday’s CFTC’s Commitments of Traders data update.

Monday, the U.S. Senate, for a fifth time, failed to pass the House bill that would temporarily fund government operations. Republicans need at least eight Democrats to meet the 60-vote threshold required to advance the legislation, but only three crossed over. With that the Trump administration reiterated its threat of mass government layoffs if the shutdown persists.

Daily chart support for December cotton stands at 64.60 cents and 64.00 cents, with resistance at 65.50 cents and 66.40 cents. Tuesday morning’s estimated volume is 5,745 contracts.

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