Cotton Rebounds Tuesday

After a fairly discouraging trade on Monday, the cotton market is moderately higher Tuesday. Early Monday, the ICE futures were sharply higher on the weekend news that India was reducing her import tariffs on cotton. Then came the USDA’s announcement of a new program to promote U.S. cotton.  Still, the market was unsure of its standing and precipitously fell lower.

Monday afternoon, USDA updated its planting progress reports. The weekly Crop Progress report showed 66% of the U.S. cotton crop was planted as of May 31, up from 53% the previous week and 64% a year ago and just slightly behind the five-year average for this date at 67%. Texas was 56% planted, down from the five-year average at 59%; Georgia was 72% planted versus a five-year average of 75%; Arkansas was 88% planted versus 91% on average; and Mississippi was 83% planted versus 80% on average.

This Thursday, USDA will issue fresh export sales data. Last week saw net sales for old crop at 153,000 bales, up 17%, and new crop at 112,000. Weekly shipments were 317,700, up 10% weekly.

Friday, the Labor Department will release its jobs numbers for May. Last month’s data showed a much higher employment rate than most were expecting. 

Chart support for December cotton stands at 79.50 cents and 79.00 cents, with resistance around 81.75 cents and 82.25 cents. Tuesday morning’s estimated volume is 15,702 contracts.

Keith Brown can be reached at commodityconsults@gmail.com or by calling (229) 890-7780.