December cotton is weaker today, seeing pressure from the strong dollar.
The US harvest is advancing, but it could be slowed by heavy rainfall expected for Texas and the Delta over the next five days.
Traders may have to look to tomorrow’s weekly export sales report or the USDA supply demand report on Friday for direction. Last week’s export sales report showed net sales of 189,436 bales for the week ending October 24. This was the third straight week they were above 150,000 after being below that level for the previous five weeks. Last year, sales picked up dramatically around this time, starting with 457,000 bales on October 26, and followed by 396,000, 331,000 and 334,000 over the ensuing three weeks.
US production could be lowered in Friday’s reports, as Georgia’s conditions have not recovered from the hurricanes.
Tropical Storm Rafael is expected to grow to a Category 1 hurricane this week, with possible landfall along Louisiana this week. This could bring rain to the Delta, but it is not expected to be anywhere near as strong as Helene.