By admin       2018-07-17

December cotton finished fractionally lower on slow volume in Monday’s session. The market essentially see-sawed all day within its 106 point range on a total estimated volume of less than 15,000 contracts.The market spent the day waiting for USDA’s crop condition numbers later Monday, and for any peripheral surprises from the Trump-Putin meeting in Helsinki, Finland. The latter event proved to be a dud, as even the Dow Jones traded within the confines of a hundred points on slack volume.The cotton market is eyeing upcoming Texas weather for direction. That forecast has West Texas experiencing several consecutive days of temperatures in triple-digit levels. With such a forecast, it is rightfully assumed many parched dry-land fields are beyond salvation, and have, in fact, been zeroed out by insurance agents. The market will now anticipate another reduction to the 2018 crop by USDA in its August crop report.Yet, hanging over the market’s head this week is the potential for a bearish Chinese response to the Trump Administration’s latest tariffs. Just last week, some $200 billion worth of import taxes were levied on Chinese goods, and it is thought they will offer an in-kind retaliatory action. So far, though, they have been quiet.December cotton settled at 8777, down 7 points. Technical support is seen at 8675 and 8640, with resistance at 8983 and 9120.

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