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DTN Morning Cotton Commentary 10/21 07:57
Cotton Weakens
The cotton market is lower Tuesday as unconvinced friendly traders are
bailing on the lack of positive price follow-through
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is lower Tuesday as unconvinced friendly traders are
bailing on the lack of positive price follow-through. Overnight, gold and
silver are experiencing a huge selloff, which is creating a de-risk condition
for other markets. The U.S. government remains closed, thus reliable trading
data is sparse and scarce.
Some private analysts are saying the 2025 cotton harvest is roughly 50%
complete. Much of the Cotton Belt is experiencing clear conditions. especially
the Southeast.
Crude oil is essentially steady Tuesday, despite growing concerns of
oversupply and risks to demand. Prices declined to their lowest since early May
on Monday on the concerns around oversupply and slowing economic growth
resulting from the recent escalations in the U.S.-China trade dispute.
The U.S. dollar is slightly higher Tuesday as traders are somewhat in an
upbeat market mood after President Trump said on Monday he expects to reach a
trade deal with Chinese President Xi Jinping. Additionally, the White House
economic adviser Kevin Hassett said the 20-day U.S. federal government shutdown
was likely to end this week.
Daily chart support for December cotton stands at 63.60 cents and 63.00
cents, with resistance at 64.75 cents and 65.30 cents. Tuesday morning's
estimated volume is 7,745 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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