DTN Morning Cotton Commentary          10/17 07:56

   Cotton Sees Friday Recovery

   After posting a couple of life-of-contract lows this week, the cotton market 
is attempting to stage a short-covering.

Keith Brown
DTN Contributing Cotton Analyst

   After posting a couple of life-of-contract lows this week, the cotton market 
is attempting to stage a short-covering. Of late, the market has been depressed 
by ongoing harvest pressure, the shutdown of the federal government and trade 
tensions with China.

   The U.S. dollar is headed for its worst weekly close since July. Among its 
many detractors, the federal government shutdown has choked off the release of 
key macroeconomic data, making investors less certain of direction and 
confidence.

   There are behind the scenes talks occurring between China and U.S. trade 
officials. In fact, Treasury Secretary Bessent is scheduled to speak to his 
Chinese counterpart today. Moreover, it's still expected that Presidents Trump 
and Xi will meet in South Korea at the end of this month.

   The 6- to 10-day weather outlook (Oct. 22-26) calls for above-normal 
temperatures for Texas, but normal readings for the Southeast and the Delta. 
Rain-wise, Texas looks to have slightly above normal chances, but the Delta and 
particularly the Southeast will have below-normal opportunities.

   Daily chart support for December cotton stands at 63.25 cents and 62.50 
cents, with resistance at 64.80 cents and 65.30 cents. Friday morning's 
estimated volume is 9,906 contracts.

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




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