The cotton market has been trading sideways this week as traders watch the development of Hanna, Ike, and Josephine. There has been short-covering in the last week due to Gustav, which brought heavy rainfall around Louisiana, where 57% of the cotton crop had bolls opening. Traders are still waiting for any reports of any damage, if any, from this storm. Hanna is expected to reach the U.S. early Saturday morning and will make landfall in South Carolina. The boll openings in South Carolina are around 7%, as of 8/31, which is behind the average of 21%. For more information on these storms, you can log onto www.wxrisk.com. Before these storms, there were already concerns about the size of the U.S. crop due to the less than ideal weather conditions in Texas. As of 8/31, the Texas crop had a rating of 29% poor to very poor, 40% fair, and 48% good to excellent. Traders will continue to watch the USDA's Weekly Crop Progress Report, which is released every Monday at 3:00pm CST, to see the development of the crop. Support for December is at 68.00. Resistance is at 70.50-71.00.
Boyd Cruel
Alaron Research Team
800.216.1491
bcruel@alaron.com
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