
December cotton closed lower Tuesday, but stayed above Mondays low. Outside forces were mixed with June USD modestly lower which should be supportive to cotton. West Texas could get up to .5 inches of rain in the next 5 days, which it desperately needs. The 6-10 day and 8-14 day forecasts have rain in most of Texas besides the far west part of Texas. For the USDA report today, the average trade estimate for US 2021/2022 cotton production is 17.23 million bales vs. 14.70 million for last year. With expectations for declining ending stocks for the new coming crop season, the technical actions remains weak with the market closing lower for 3 days in a row heading into a key USDA update. Resistance comes in at 8850 and 8945 with support at 8700 and 8645.
