Taking a quick look at cotton ahead of the WASDE report later today, the USDA is expected to lift the forecast for world production by some 400,000 bales to 117m bales, largely reflecting improvements in India.
Weather conditions have been favorable in India potentially leading to a bumper crop.
The USDA is also expected to raise its projections for
output in the United States, the world's top exporter.
While this will be bearish for cotton, bulls will certainly be watching import
demand figures for China, the world's leading cotton buyer, where expectations have been raised since last month.
I'm currently short cotton.