DTN Cotton Closing: Market Edging Higher
DTN Cotton Closing: Market Edging Higher

DTN Cotton Closing: Market Edging Higher

A- A+

By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market finished slightly higher Wednesday as traders anticipate Thursday’s export sales. Additionally, some speculators returned to the buy side as the market seemed to be holding key chart support. Lastly, according to the Department of Homeland Security, two COVID-19 vaccines will be tested, approved and hopefully enter the distribution process by the end of the year.

Most participants have positioned themselves for the December’s delivery and the emergence of March 21 as the lead contract. There has been a very orderly forward roll of speculators, producers and merchants over the past two weeks. Nonetheless, Friday is the cut-off day to vacate spot December to avoid the notice period.

Harvest continues to move briskly along. As of last Sunday, the 2020 crop was supposedly 69% gathered. The weather outlook for much of the cotton belt seems to be conducive for fleet harvesting efforts. Interestingly, the historical odd-on time for a harvest low is Thanksgiving week. By then the crop should be 75% in and traders will be able to project the remainder. At that time the market begins the arduous task of building a “demand market” into the new year.

Wednesday, December cotton closed at 69.68 cents, up 0.57 cent, March settled at 71.83 cents, up 0.53 cent and December 2021 finished at 70.33 cents, up 0.59 cent. Estimated volume was 26,004 contracts.


Source: Agfax

Tags

newsletter

Subscribe to our daily newsletter