By admin       2018-07-27

Overnight, December cotton rallied back to test the bearish trend-line stemming from the June high down to the July high. The cotton market was mixed overnight as new weather dynamics apparently halted any further advance. Even as dry-land fields in west Texas continue to worsen, it appears a better chance for rain is forming in the weekend forecast. A system north might dip low enough to moderate temperatures and shower beneficial rain. Naturally, with next week being August, a most critical month for crop development, if this rain were to miss, additional yield damage will occur. This morning, USDA reported paltry business for last week. The fast-fading 2017/2018 season saw only 2,300 bales sold, while the 2018/2019 sales were higher at 199,100 bales. However, within the new crop sales data there were 1,700 bales cancelled by China, and that can’t be good. Shipments were 293,300 bales, with most going to Turkey. Given the critical nature of this weekend’s potential rains, the market will trade more nervous than ever into Friday’s Close.

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