DTN Morning Cotton Commentary          12/08 07:57

   Cotton Unchanged Friday Morning

   The cotton market has traded both sides unchanged, as it attempts to hold on 
Thursday's super-strong session. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market has traded both sides unchanged, as it attempts to hold on 
Thursday's super-strong session. Thursday saw a near limit-up close on huge 
volumes as fresh Chinese data showed economic improvement, plus the 
decertifying of the ICE stocks. Traders will see new jobs numbers Friday, and 
updated WASDE tables.

   Friday at noon EST, USDA will update its supply-demand tables via the 
December WASDE. The average guess for the U.S. cotton crop is 13.08 million 
bales versus November's 13.09 million. Domestic ending stocks are expected to 
be 3.26 million versus November's 3.20 million bales. World ending stocks are 
expected to be 81.42 million versus the reported 81.50 million bales of last 
month.

   The Labor Department has issued its monthly jobs report. Expectations called 
for 180,000 new non-farms jobs versus last month's 150,000 jobs, however 
today's number was 199,000 new jobs. Most likely the higher increase was the 
results of the UAW/GM labor settlement. The dollar is higher, while Gold and 
the Dow are lower. 

   Crude oil is headed for a seventh straight weekly decline on worries over a 
global supply surplus and weak Chinese demand. However, prices were boosted 
after Saudi Arabia and Russia called for more OPEC+ members to join output 
cuts. Still nearby oil has closed under $70 for two consecutive sessions.

   For Friday, chart support for March cotton stands at 82.00 cents and 81.50 
cents, with 83.50 cents and 84.00 cents as resistance. Friday morning's 
estimated volume is 7,785 contracts. 

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




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