Cotton Futures closed higher once again


General Comments: Futures closed higher once again in response to forecasts for heavy rains this weekend and into next week that could hurt quality for the crop in open bolls. USDA showed that 37% of the crop had open bolls in the Monday report, and that number has only increased. It is possible for a couple of inches of rain to fall from Texas to the east. Georgia could get double that amount or even more. US crop conditions right now are generally good with moderating temperatures and rains in the forecast for Texas this week and dry weather in the forecast for the Delta and Southeast. But, the crop remains well behind the normal pace due to delayed planting in the spring. The weather forecasts and the crop progress and condition reports offer no concerns for production at this time. Weather for Cotton still appears good in India and Pakistan, and harvest should be starting there. Cotton in China is seeing rain that could hurt quality.

Overnight News: The Delta will see some storms on Friday and Southeast will see showers this weekend. Temperatures will average near to above normal. Texas will see scattered showers again at the end of the week. Temperatures will average above normal. The USDA spot price is now 81.55 ct/lb. ICE said that certified Cotton stocks are now 0.015 million bales, from 0.015 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 84.20, 83.70, and 83.55 December, with resistance of 85.80, 86.25, and 86.55 December.

Source: Futures Mag