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DTN Morning Cotton Commentary 11/20 07:46
Cotton Up; Preps for Delivery, Exports
The cotton market is somewhat higher today as traders are squaring positions
ahead of Friday's notice period for spot December.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is somewhat higher today as traders are squaring positions
ahead of Friday's notice period for spot December. In addition, better earnings
from the chip-giant Nvidia has rallied many outside markets, thus offering a
more positive financial environment.
As mentioned, December cotton will enter its notice period on Friday. All
traders, except those intending to participate in the notice process, will have
to liquidate or roll forward by the close of Thursday. Current open interest
for the spot month stands at 8,712 contracts.
Wednesday, the CFTC issued the first of eight shutdown-delayed Commitment of
Traders reports. To no surprise, for the week ended Sept. 30, the trade was a
net buyer, adding to their growing long position, and specs were net sellers,
adding to their increasing net-short position.
The U.S. dollar is posting new highs for its current move this morning.
Wednesday's release of the Fed minutes made a December rate cut seem less
likely. The Open Market Committee members were openly divided regarding a rate
reduction.
Daily chart support for March cotton stands at 63.60 cents and 63.00 cents,
with resistance at 64.60 cents and 65.00 cents. Thursday morning's estimated
volume is 9,328 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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