Noncommercial buying continues to support the cotton market, with the December contract pressing its high of 75.00.

Comments:

After establishing a major (long-term) uptrend on the marketΆs monthly chart in July, the more active December issue continues to press its contract high of 75.00. However, unlike previous sessions, commercial buying interest faded Monday meaning most of the support came from the noncommercial side of the market. If commercial buying doesnΆt return soon, and the December doesnΆt move to a new high, it increases the marketΆs vulnerability for a move to a secondary (intermediate-term) downtrend on weekly charts.

Commercial interests likely moved to sidelines Monday ahead of the afternoonΆs weekly crop condition and progress estimates from NASS. Last MondayΆs report showed a decrease in crop conditions, with more of the same expected this week. As for progress, the 2016 crop continued to run slightly ahead of average for both squaring and setting bolls. Monday afternoonΆs numbers could generate increased trade activity in the overnight session.

General Comments:

December cotton was up 0.34 at 74.38 while March gained 0.47 to 74.38. December corn finished 8 1/2 cents lower as November soybeans fell 41 1/2 cents and September Chicago wheat dipped 1 3/4 cents at the close.

The U.S. dollar index was 0.212 higher at 95.742. December gold was $2.10 higher at $1,359.60 while September silver was $0.148 higher and September copper was $0.0250 lower. The Dow Jones Industrial Average was 42 points lower at 18,390. September crude oil was $1.57 lower at $40.93. The September distillates (heating oil) contract was $.0492 lower while September RBOB gasoline was down $.0159 and September natural gas lost $0.104.