General Comments: Futures closed lower as traders waited for word on the potential Chinese sales from government reserves. China could begin to sell Cotton from state reserves this week. Ideas are that the sales there would kill demand for imported Cotton, especially from the US. Scattered showers are in the forecast for late this week in eastern areas, but the crop should remain in good condition as the rains are not expected to be big. It will turn cold this weekend. Brazil conditions are reported to be very good in Bahia. US crop conditions right now are generally good in Texas amid dry weather. The Delta and Southeast are reporting generally favorable conditions as well.
Overnight News: The Delta and Southeast will see dry weather early this week and light precipitation late this week. Temperatures will average near to above normal this week and near to below normal this weekend. Texas will see dry conditions through Wednesday and precipitation on Thursday and Friday. Temperatures will average near to above normal this week, but below normal this weekend. The USDA spot price is 73.97 ct/lb. today. ICE said that certified Cotton stocks are now 0.221 million bales, from 0.208 million yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 75.20, 74.35, and 74.20 December, with resistance of 77.70, 78.50, and 78.80 December.
Source: Futures Mag