Cotton Futures closed sharply lower to limit down on production estimates from India

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General Comments: Futures closed sharply lower to limit down on production estimates from India. The country expects to produce 37.2 million bales of Cotton in 2013-14, much higher tan had been expected by about everyone. After the close USDA released its crop reports that showed overall improvement in crop condition, and that added to the selling pressure. More talk of production problems in the Southeast, and especially Georgia, as well as in Texas lost credibility with the USDFA data. Other parts of the world show more mixed production conditions. Very hot weather conditions in China continue, and the weather in Corron áreas is not really improvng right now in that country. US crops remain behind the normal pace. The poor planting conditions early in the year has made the crop progress behind normal. Texas is dry, but will turn cooler later in the week. Weather for Cotton still appears good in India.

Overnight News: The Delta will be dry and Southeast will see scattered showers and storms. Temperatures will average above normal in the Delta and near to below normal in the Southeast. Texas will see dry weather. Temperatures will average above normal. The USDA spot price is now 84.47 ct/lb. ICE said that certified Cotton stocks are now 0.041 million bales, from 0.042 million yesterday.

Chart Trends: Trends in Cotton are up with no objectives. Support is at 92.00, 90.75, and 90.10 October, with resistance of 94.20, 94.80, and 95.60 October.

Source: futuresmag.com

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