By Keith Brown, DTN Contributing Cotton Analyst
The cotton market soared to new price heights Monday, posting a new monthly high. The market was driven by surging stock markets, twin hurricanes and recent strong demand from China. Last week, the CFTC reported certain speculators had padded their already long positions, but after Monday, those traders have reason to potentially buy additional contracts. Weather wise, traders are watching both Marco and Laura, but, so far, neither storms will rate as a major hurricane (Category 3 or greater). Still, excessive rain on the Delta cotton crop may be an unwelcome event.
Monday afternoon, USDA will report on the condition of the 2020 crop. Last week, the tabulators had improved the nation’s standing from 45% good to excellent, up from its previous 42% good to excellent. Within that data was also an improving Texas crop as well.
Monday, December cotton closed at 65.82 cents, up 1.54 cent, March ended at 66.63 cents, up 1.43 cent, and Red December settled at 65.04 cents, 0.68 cent higher. Monday’s estimated volume was 33,941 contracts.