By Keith Brown, DTN Contributing Cotton Analyst
December cotton finished the month of August on a positive note. The new-crop market closed up 250 points Monday, the last day of August. In fact, it was during August the market posted its highest traded price (66.45 cents) since making its April COVID low of 50.18 cents. Now as the market enters September, it will determine if the crop is smaller or as large as USDA has recently been reporting. Of course, that insight will come from the September Supply and Demand report out Friday, Sept. 11.
Monday afternoon, USDA will report on the crop’s condition. As of last week, the nation’s cotton crop was rated at 46% good/excellent, versus the 10-year average of 48% good/excellent. Naturally, traders will be eyeing the report for any damage insights to the Delta crop caused by Hurricane Laura.
Later this week, there will be two interesting reports for the market to digest. Thursday will be the weekly export sales report. This will be the first sales data since the U.S./China teleconference was held, with both sides supporting a continuance of phase-one trade obligations. Then on Friday, the Labor Department will issue its monthly jobs reports. The data will naturally speak to the strength, or not, of the U.S. economy.
For Monday, December cotton ended at 65.16 cents, plus .08; March finished at 66.05 cents, up .12; December 2021 settled at 65.44 cents, .23 higher. Monday’s estimated volume was 19,794 contracts.