ICE cotton futures closed moderately lower in definitive technical trade. Earlier in the session, December cotton rallied just enough to violate its recent high of 8911, before collapsing some two hundred points. The motivator for such a fall revolved around the potential for rain this weekend across West Texas.
As of Tuesday, chances for precipitation over Saturday, Sunday and Monday have been hiked to 60% or better. Although rain now may not necessarily reinvigorate the dry-land crop, it would certainly benefit the suffering irrigated fields. Yet, the market, needing more than hope, needed to see the “actual stuff” before violating its well established month long trading range.
Of course, before the weekend, the market will see the latest domestic and world supply-demand data from USDA. Analysts estimates will be available Wednesday.
December cotton settled 8790, down 50, March 19 at 8808, down 31, and December 2019 at 8100, down 30. Tuesday’s estimated volume was 32,000 contracts.