By admin       2018-07-16

Overnight, the cotton market gave back one-fourth of its 400 point limit-up run from yesterday. Thursday saw USDA issue some hefty bullish crop data in its July supply-demand report.Initially, the government lowered the 2018 crop by one million bales to stand at 18.70 million. In turn, that reduction cut domestic carryout to 4.0 million, down from its previous 4.70 million.Next, it lowered the world carryout by nearly 5 million bales, with the majority of that reduction coming in the Chinese carryout.Add to that the on-going weather disaster of West Texas, it then became a short hop, skip, and a jump to limit-up. However, concerns over China’s impending response to the latest U.S. tariffs, plus end-of-the-week profit-taking are blunting the rally.Volume so far is an estimated 10,000 contracts trade. The inference of stronger overnight volume suggests a wild day may be in the offing.

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