December finished slightly higher Friday in a session marked by decent estimated volume of 21,700, but also one with a daily trading range of less than 75 points. Thus, in the absence of any sort of bullish news, the market kept its recent behavior of trading the path of least resistance, which was sideways.
Frankly, the congestive action itself was a slight positive for the market, given this week’s poor exports, a strong dollar, a falling Dow Jones and harsh comments from Vice President Pence over China’s alleged involvement in U.S. election meddling. Interestingly, for the week, December cotton lost 27 points.
Next week USDA will issue its September crop report on Thursday, and we understand domestic production might see yet another increase. The last report, September supply-demand, the government increased the U.S. Crop by 560,000 bales, even though most analysts were anticipating a decline. Since that time, USDA’s weekly crop ratings have reflected even more improvement in the nation’s crop.
Also, next week, we will be observing the tropical thing located in the lower Caribbean. Currently, it appears to be heading for Honduras and the Yucatan Peninsula, but could easy pass over and reform in the Gulf.
December cotton settled today at 7610, up 10, March was 7714, plus 32, and December next year closed out at 7575, up 27 points.