No Soft Landing for Cotton Today!
December Cotton fell to lows not seen since June 27th, as weaker-than-expected USDA export estimates overshadowed a cut in U.S. production. The USDA cut its estimate for the U.S. Cotton crop to 17.35 million 480-pound bales, down from 17.5 million bales in the July report. However, the USDA cut its estimate for U.S. Cotton exports by 300,000 bales, which was seen as a sign of weaker world demand, as well as the rise in world ending stocks to 51.52 million metric tons, up from 50.78 million in July. Today's sell-off sent prices through the 50-day moving average, with triggered sell-stops below this level. 6007 is seen as the next support point for December Cotton, with resistance found at 6235. December Cotton closed at 6124, down 118.
Gold and Silver futures had a wild ride today, with prices initially in the red as continued fund liquidation roiled the commodity markets. However, the fresh influx of funds to the financial system throughout the world by Central Banks and some moderate flight-to-safety buying by speculators caused a sharp rally in the two major precious metals. A weaker U.S. Dollar versus the Euro also was supportive to the metals complex. Today's rally in Gold sent prices back above both the 20- and 50-day moving averages, which triggered fresh momentum buying. Silver futures found some support after hitting 1-month lows $12.605, but prices remained below the widely watched moving averages at the close of the day session. Support for December Gold is now seen at $665.30, with resistance found at $688.10. Support for September Silver is seen at $12.635, with resistance at $13.440. December Gold closed at $681.90, up $9.10, and September Silver closed at $12.870, up $0.165.
