By admin       2018-08-09

ICE Futures continued to languish overnight on muted volume as traders await Thursday’s weekly sales and exports, Friday’s supply-demand data, and this weekend’s potential for West Texas rain.Although cotton sales are running slightly ahead of the average pace, August 23, will initiate a round of actual tariffs on $60 billion in Chinese goods. Thus, it stands to reason any sort of Chinese retaliation may wound future sales and export business.As far as supply-demand situation, expectations are calling for another major reduction in the 2018 Crop on USDA’s August Crop Report this Friday. DTN readers will remember how aggressively the government slashed the crop by one million bales in its July report. Thus, with Friday’s data supposedly gathered by more meticulous means, another big cut is anticipated.Weather-wise, rain is scheduled for West Texas this weekend. Odds are for at least a 60% chance of precipitation for Friday, Saturday and Sunday. However, a pattern of this summer has been to watch such forecasts dissipate with little to no wetness.Current volume is less than 2,000 contracts. Close-in support for December Cotton is $.8675 and $.8610, with resistance at $.8920 and $.9000.

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