By admin       2018-07-02

For next week, the standard weekly technical analysis for the Dec contract remains supportive, but continues to move toward neutral; money flow into the contract is bearish.China’s tariffs on cotton – and other commodities – are scheduled to become effective on July 6, and the market will likely closely monitor newswires for any trade negotiation developments ahead of next Friday’s deadline.The combination of the Planted Acres report, a shortened holiday trading week, and the potential for market moving news on tariffs by week’s end will inspire indigestion for producers with un-priced cotton. We’re entirely sympathetic, and the combination of potential market movers will be looming over our own celebrations like distant thunder at a picnic. With that said, however, we continue to see demand at strong levels, and see the Planted Acres report as supportive in the medium to long term. To date, cotton has weathered the trade war better than other commodities, and we believe it will continue to do so. We don’t see attractive new crop pricing opportunities emerging this week and believe most producers can focus their attention elsewhere and let their brokers pay attention to the market.

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