General Comments: Futures closed higher but at the lower end of the trading range as traders waited for word on the potential Chinese sales from government reserves. China could delay the announcement and that would create new import interest there. There has been no announcement this week, but one had been expected. Wire reports indicate that some production has been lost in China after recent bad weather in some growing areas. 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 light precipitation late this week and a mostly dry weekend. Temperatures will average near to above normal this week and below normal this weekend. Texas will see on Thursday and Friday and a dry weekend. Temperatures will average near to above normal this week, but below normal this weekend. The USDA spot price is 74.39 ct/lb. today. ICE said that certified Cotton stocks are now 0.221 million bales, from 0.208 million yesterday. USDA said that net Upland Cotton export sales were 305,100 bales this year and 13,200 bales next year. Net Pima sales were 26,200 bales this year and 0 bales next year. China imported 141,157 tons of Cotton in October, down 48.1% from last year. Calendar year to date imports are now 3.4 million tons, down 21.7% from last year.
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