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DTN Morning Cotton Commentary 12/08 07:57
Cotton Unchanged Friday Morning
The cotton market has traded both sides unchanged, as it attempts to hold on
Thursday's super-strong session.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market has traded both sides unchanged, as it attempts to hold on
Thursday's super-strong session. Thursday saw a near limit-up close on huge
volumes as fresh Chinese data showed economic improvement, plus the
decertifying of the ICE stocks. Traders will see new jobs numbers Friday, and
updated WASDE tables.
Friday at noon EST, USDA will update its supply-demand tables via the
December WASDE. The average guess for the U.S. cotton crop is 13.08 million
bales versus November's 13.09 million. Domestic ending stocks are expected to
be 3.26 million versus November's 3.20 million bales. World ending stocks are
expected to be 81.42 million versus the reported 81.50 million bales of last
month.
The Labor Department has issued its monthly jobs report. Expectations called
for 180,000 new non-farms jobs versus last month's 150,000 jobs, however
today's number was 199,000 new jobs. Most likely the higher increase was the
results of the UAW/GM labor settlement. The dollar is higher, while Gold and
the Dow are lower.
Crude oil is headed for a seventh straight weekly decline on worries over a
global supply surplus and weak Chinese demand. However, prices were boosted
after Saudi Arabia and Russia called for more OPEC+ members to join output
cuts. Still nearby oil has closed under $70 for two consecutive sessions.
For Friday, chart support for March cotton stands at 82.00 cents and 81.50
cents, with 83.50 cents and 84.00 cents as resistance. Friday morning's
estimated volume is 7,785 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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