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DTN Morning Cotton Commentary 10/23 07:22
Cotton Ponders The Weekend
Cotton steadies higher ahead of CFTC data, exports, Fed outlook.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is slightly unchanged this morning as it works its way
towards this weekend. Thus far, the market is up some 70 points, but it still
has Friday's session still to maneuver. Traders have already seen positive
exports-sales and now await this afternoon's CFTC data.
As mentioned, at 3:30p.m. EDT, the CFTC will update its Commitment of
Traders (COT) report numbers. Last week, the managed-money funds net bought
1,862 positions increasing their net-long carry to 65,699 contracts.
Although WTI futures were on track for a weekly decline, Crude Oil is
materially higher this morning. Traders are continuing to monitor developments
in the Middle East. Yesterday, President Trump accused Iran of doing everything
it can to drive up the price of oil prior to the U.S. Midterm Elections. Iran's
army chief reportedly said that the country's military is fully prepared for
"asymmetric warfare" after strengthening its capabilities.
Next week the Federal Reserve will meet to discuss the U.S. economy. Recent
reports are showing higher concentrations of inflation thus the central bank
may feel pressed to raise rates. However, most analysts feel that the central
bank will wait until December to do so.
For Friday, close-in support for December Cotton stands at 80.00 cents and
79.20 cents, with resistance around 81.80 cents and 82.90 cents. Friday
morning's estimated volume is 9,876 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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