Cotton Futures closed sharply lower

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General Comments: Futures closed sharply lower as Tropical Storm Karen moved away from the state late in the weekend, and is in a much diminished state as weather conditions in the Gulf partially broke the system apart. The storm did not hurt open bolls or hurt overall quality, so speculators sold after buying last week. Traders also talk about monsoon rains in India that are slow to withdraw this year. The extra rains could really hurt quality there, and maybe yields. However, it is turning warmer and drier there this week after some big rains last week. Worries about Chinese production are also heard after some big typhoons passed near important production areas. This area is also turning drier this week. US crop conditions right now are generally good in Texas. Trends turned mixed on the charts with the price action yesterday.

Overnight News: The Delta will be dry and Southeast will see showers in the east, otherwise dry weather. Temperatures will average above normal. Texas will see dry weather through Thursday, then light showers. Temperatures will average above normal. The USDA spot price is not available today. ICE said that certified Cotton stocks are now 0.012 million bales, from 0.011 million yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 83.60, 82.90, and 82.10 December, with resistance of 84.20, 85.50, and 85.80 December.

Source: Futures Mag

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