Cotton Sputters Higher

The cotton market is fractionally higher Monday morning, likely influenced by outside positive markets. The Dow, gold, and the Chicago grains are all higher. The government shutdown has entered day six, with the U.S. Senate voting again Monday on whether to reopen. 

As mentioned, the shutdown will delay Monday afternoon’s crop condition/harvest ratings, as well as Thursday’s export sales and the October WASDE update.

Crude oil is higher Monday after Sunday’s virtual meeting among OPEC members saw only modest increases to production in November. Originally, it was suggested that crude production could ramp up as much as 500,000 barrels per day, but the consensus number from Sunday was 137,000 barrels.

The 6- to 10-day weather outlook (Oct 11-Oct. 15) calls for above-normal temperatures for Texas and the Delta, but normal for the Southeast. Rain-wise, West Texas looks to have slightly normal chances, while the Delta and the Southeast show below normal chances. 

Daily chart support for December cotton stands at 64.60 cents and 64.00 cents, with resistance at 65.75 cents and 66.10 cents. Monday morning’s estimated volume is 4,105 contracts.

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