Cotton: “Holiday Rally”?
Cotton market rises cautiously ahead of Labor Day holiday weekend.
The cotton market, after its “speculative beating,” is gingerly higher this morning. The market is partly oversold, thus ahead of the three-day Labor Day Holiday, fortunate traders want to take their profits. Traders will also assess today’s reports, enjoy their three-day rest, and come back to see what new events might befall the market.
On Friday, traders will see new monthly jobs data for August. Last month, the Labor Department reported a net job loss of 85,000 non-farm jobs. The report is out at 8:30 a.m.
Also, on Friday at 3:30 p.m., the CFTC will update its weekly C-O-T numbers. Last week, the managed-money funds bought some 17,000 positions, swelling their net-long carry to 95,000 contracts. Their record long position stands around 108,000.
The general marketplace will be closed this Monday for Labor Day. Normal trading will resume Monday Night.
The six-to-ten-day weather forecast (Sept. 9-Sept. 13) shows above-normal temperatures for the US Cotton Belt. Rainwise, Texas will have slightly above-normal chances, while the Delta and the Southeast are forecasted with normal chances.
For today support for December Cotton stands at 8570 and 8475, with resistance around 8950 and 9000. This morning’s estimated volume is 14,079 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling (229) 890-7780.
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