By admin       2018-08-03

Overnight, the cotton market was lower after a very weak showing on Wednesday. In that session, December cotton ran up to the very edge of 90-cents, but failed to hurdle that level. Its failure, plus the news of an even harsher trade tone coming out of Washington, caused the market to fall triple digits This morning the market remains under some pressure as traders are more or less sidelined, waiting on the August Crop Report. That highly anticipated data will be released next Friday, August 10th, and will most likely be a make or break event for the market. Weather for the next two weeks has west Texas with persistent hot and dry conditions; conversely the Southeast and the mid-Atlantic is on the verge of being a tad too wet. Also today, USDA reported net sales of 19,600 bales for 2017/2018 were up noticeably from the previous week, but down 49 percent from the prior 4-week average. Increases reported for China (6,500 RB), South Korea (5,000), Taiwan (3,400), Pakistan (2,300), and India (1,300). For 2018/2019, net sales were 261,200 bales with top buyers Vietnam (128,500), Pakistan (25,300), South Korea (23,800), Colombia (22,700), and Mexico (16,700). there two sets of cancellations, one by India (1,600) and the other, China (1,300). Weekly Exports of 259,100 RB were down 12 percent from the previous week and 13 percent from the prior 4-week average. The primary destinations were Vietnam (59,500), Indonesia (42,200), Turkey (38,500), China (28,100), and Thailand (15,400). Today’s close-in support for December cotton is 8700 and 8610, with resistance at 8885 and 9000 cents.

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