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DTN Morning Cotton Commentary 10/09 07:12
Cotton Higher as Isaias Threatens an Already Short Crop
The cotton market is materially higher Friday as some traders fear winds
from Hurricane Isaias will result in loss in a crop that seems to already be
coming up short.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is materially higher Friday as some traders fear winds
from Hurricane Isaias will result in loss in a crop that seems to already be
coming up short. Also, traders are mindful of Friday's World Agricultural
Supply and Demand Estimates (WASDE) and CFTC updates.
Hurricane Isaias is headed for a Gulf Coast landfall Friday night with
life-threatening storm surge, flooding and high winds. It will then spread its
heavy rain and wind inland over the Southeast this weekend.
October cotton expired Thursday at 76.21 cents. Its contract low was 65.87
cents and its high was 92.15 cents. There were no deliveries tendered against
that contract.
Friday at noon EDT, USDA will release its October WASDE. Last month,
government tabulators reduced the current crop from 13.60 million bales to
13.20 million bales, while lowering ending stocks to 3.60 million bales from
the previous 4.00 million bale level.
This afternoon at 3:30 p.m. EDT, CFTC will update its Commitments of Traders
numbers. Last week, the managed-money funds net sold some 7,000 positions
reducing their net-long carry to 74,500 contracts.
Crude oil is somewhat lower Friday as President Trump said that the U.S.
will not attack Iran before U.S. elections next month. Also, there is a hint of
yet another effort at background talks to end the war. The delayed attacks,
along with China's resumption of oil product exports, have prices moving lower.
For Friday, close-in support for December cotton stands at 79.75 cents and
78.70 cents, with resistance around 82.75 cents and 84.00 cents. Friday
morning's estimated volume is 12,830 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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