| |
DTN Morning Cotton Commentary 11/06 07:19
Cotton Sees Rough Seas
The cotton market is somewhat lower Thursday as the surrounding financial
environment looks shaky.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is somewhat lower Thursday as the surrounding financial
environment looks shaky. The U.S. Supreme Court is hearing arguments against
the Trump Tariffs and could rule them invalid. Additionally, this week's
election victories may be stiffening Democratic resolve to keep the government
shut down; with such uncertainty most markets will likely retreat.
There is a possibility that presidents Trump and Xi could meet again at the
G-20 Summit in South Africa late this month. The two recently negotiated a
verbal deal on trade between the nations, however, nothing has been inked.
This Friday, options on the December contract will expire at the close of
the ICE Futures. Their expiration will affect the market's total open interest
levels.
USDA has announced it will release an updated crop report on Nov. 14, even
if the shutdown continues. On the last WASDE prior to the shutdown, USDA had
increased the U.S. 2025 cotton crop to 13.22 million bales versus the previous
13.21 million bales.
December cotton will enter its delivery on Nov. 21. Thus, all traders --
except those intending to participate in the notice process -- will have to
liquidate or roll forward in time.
Daily chart support for December cotton stands at 64.70 cents and 64.00
cents, with resistance at 66.10 cents and 66.75 cents. Thursday morning's
estimated volume is 10,234 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
(c) Copyright 2025 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
|
|
