Cotton Futures closed sharply lower on harvest related selling

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General Comments: Futures closed sharply lower on harvest related selling. USDA showed that the harvest has been slow in its release Monday, but good weather has seen the harvest pace pick up quite a bit this week. Crop condition ratings were good. Traders should get more reports on demand next week. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas. The Delta and Southeast are reporting generally favorable conditions as well. Trends are mostly down on the charts and price action yesterday was very weak.

Overnight News: The Delta and Southeast will see dry weather. Temperatures will average near to below normal. Texas will see dry weather. Temperatures will average below normal this week and near to above normal this weekend. The USDA spot price is 77.78 ct/lb. today. ICE said that certified Cotton stocks are now 0.094 million bales, from 0.86 million yesterday. USDA said that net Upland Cotton export sales for the week ending October 3 were 44,000 bales this year and -4,400 bales next year. Net Pima sales were 25,400 bales this year and 0 bales next year.

Chart Trends: Trends in Cotton are down with objectives of 7920 December. Support is at 80.40, 80.10, and 79.00 December, with resistance of 81.20, 81.70, and 82.10 December.

Source: Futures Mag

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