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DTN Morning Cotton Commentary          09/23 08:37

   Cotton Lower, Eyes Dollar

   The cotton market is trading lower Wednesday as weaker foreign currencies 
are catapulting the dollar higher. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is trading lower Wednesday as weaker foreign currencies 
are catapulting the dollar higher. A stronger dollar is seen as a detriment to 
U.S. exports. The dollar's newfound strength lies in the apparent resurgence of 
COVID-19 in Great Britain and the European Union. The UK has just announced 
additional social restrictions, and Europe may soon follow.

   India is now projecting a larger crop as monsoonal activity was plentiful 
and timely. Indian agricultural officials are now forecasting a domestic crop 
of 37 million U.S. size bales. This number compares to USDA's most recent crop 
assessment of 30 million, up from 2019's 29.50 million.

   Traders are also mindful of several U.S. weather events potentially hurting 
the 2020 crop. Damage assessments from Hurricane Sally are slow to emerge, and 
now rains from Tropical Storm Beta will likely punish production across the 
U.S. Delta and the Southeast. In addition, the National Hurricane Center is 
monitoring a tropical disturbance hovering right off the Gulf side of the 
Florida coast. It has yet to be determined if this swirl will form into 
anything serious. 

   For Wednesday, intermediate support for December Cotton is 64.50 cents, with 
overhead resistance at 66.70 cents.  The current estimated volume is 7,525 
contracts.

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




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