After trading triple-digit higher in its Sunday night session, the cotton market has pared most of its gains. Such is the continuing rhythm of the trade, that is it is up with the Chinese at night, but then lower as the North American session opens up.
Last Friday the CFTC released its weekly commitment-of traders report. Interestingly, it showed that the managed-money funds have decreased their net-long position. Currently, as of Oct. 11, they are net long 87,445 contracts, a decline of 9,298 contracts.
Monday afternoon USDA will issue its weekly crop progress data. Last week the 2021 Crop was shown to be 20% gathered. With improving weather that progress ought to improve, but the slow maturing crop will drag out the event.
Weatherwise, the one-to-five forecast calls for moderate weather across the Delta and the Southeast, while Texas remains mostly dry. However, the six-to-10 day, and the eight- to 14-day outlooks indicate above normal chances of rain in Texas, and normal to below normal for the Delta, and below normal in the Southeast.
For Monday, close-in support for December cotton is $1.0750 and $1.0650, while resistance stands at $1.1100, and $1.115010. The estimated morning volume is 6,080 contracts.