Cotton Futures (December)
Rebound in Cotton Futures
For the third straight day, December cotton futures tried to move higher. Tuesday’s gains were almost erased after talks that a China deal was on the horizon, but those rumors didn’t amount to anything substantial.
The USDA weekly reports have shown little improvement in conditions, but the August report surprised many – this was no different in cotton. A big drop, 8%, in “good to excellent” in Texas’ crop was a big reason why cotton prices rose to start the week. Production seems to be lower in cotton, so prices should move higher. Another factor that could come into play is the tropical storm Dorian headed for the coast. Cotton in Florida could be greatly affected. Technically, look at the 58.00 level for support and a break above 59.95 could help the December futures get back to the prices we saw in July.
The equity market also took a downturn due to the lack of news.
The agricultural, specifically corn, wheat, and beans have shown weakness and have not been unable to rally as many anticipated.
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