Cotton Futures closed a little higher in range trading


General Comments: Futures closed a little higher in range trading. Traders seem to be getting ready for the USDA production reports next week. Informa released its estimates during the session. Informa estimated US 2013 cotton crop near 13.9 mil bales. The USDA July production estimate was 13.5 million bales. Growing conditions remain generally very good. Temperatures are warmer again in Texas, but some very beneficial precipitation has been seen in the last couple of weeks and production ideas are generally high. Conditions in Alabama, Mississippi, and Missouri are good after some big rains earlier in the growing season. Export sales have been on the weak side lately as the buy side of the market waits for prices to work lower. World production ideas are also high. Weather for Cotton still appears good in India, Pakistan, and China. Overall, it looks like futures have made some short term tops and can now slide lower into harvest. How low prices go will depend on the demand side of the market now. Traders will continue to watch the world economy for clues. US economics are general improving but remain somewhat mixed. China and Europe are having a tougher time right now and these trends might continue for the next few months.

Overnight News: The Delta and Southeast will see showers off and on all week, mostly in northern areas. Temperatures will average near to above normal. Texas will see dry weather this week and maybe some showers in the north. Temperatures will average above normal. The USDA spot price is now 81.29 ct/lb. ICE said that certified Cotton stocks are now 0.070 million bales, from 0.070 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 85.00, 84.30, and 84.00 October, with resistance of 86.00, 86.50, and 87.00 October.