Cotton Grinds Lower

The cotton market is on task to close lower on the week. Earlier, the market had displayed a more encouraging tenor, but failing to hurdle certain overhead technical resistance deflated the rally. Traders will now assess Friday afternoon’s CFTC data and whatever results from the supposed Trump/Xi call. 

Sometime Friday President Trump and China’s Xi will hold a phone call to discuss several issues including tariffs, trade, and TikTok. In an interview with Fox News, Trump said the U.S. and China were very close to deals on all of it — referring to both TikTok and trade — and claimed his relationship with China is very good.

Friday afternoon, CFTC will update its Commitments of Traders information. Last week’s tally revealed managed-money funds had net sold some 2,500 positions, lifting their net-short carry to 68,905. Their record net-short carry stands at 79,957 contracts. The report will be out at 3:30 p.m. EDT.

Daily chart support for December cotton stands at 66.50 cents and 66.10 cents, with resistance at 67.50 cents and 68.50 cents. Friday morning’s estimated volume is 3,890 contracts.

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