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DTN Morning Cotton Commentary 12/02 07:26
Cotton Timidly Inches Higher
The cotton market is trying to ease higher Tuesday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is trying to ease higher Tuesday as traders are weighing
all economic aspects for its demand. Monday's delayed export sales data seemed
solid enough and there are expectations of an interest rate cut by later this
month. In addition, the 2025 harvest seems to be winding down.
As mentioned, the Federal Reserve will meet next week with the hope of an
interest rate reduction. However, the odds for a cut, like Las Vegas
bookmakers, have been all over the place
Tuesday at 3:30 p.m. EST the CFTC will publish updated Commitments of
Traders data. Its previous catch-up release of last Wednesday showed
managed-money funds posted a new record net-short position in excess of
80,000-plus contracts.
Spot December contract remains in its delivery period and today there were
12 notices issued. Thus far, the total notices tendered stand at 185 contracts.
Delivery runs through Dec. 7.
Two key reports traders are eyeing this week are Thursday's export sales
report, followed by Friday's monthly job data from the Labor Department. Both
will likely influence the prices of cotton.
Daily chart support for March cotton stands at 64.00 cents and 63.50 cents,
with resistance at 65.00 cents and 65.45 cents. Tuesday morning's estimated
opening volume is 6,554 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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