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.

Cotton Dec ’21 Daily Chart
800-826-2270312-373-4968Series 3 Licensed

Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
Read More