By admin       2018-08-23

Cotton is markedly higher this morning as traders anticipate “good things” to emerge from the China-U.S. trade talks. December cotton is keeping a low profile today as it has one eye on the falling dollar and the other on the U.S.-China trade talks. Those trade negotiations commence today and are scheduled to run through Thursday. The purpose of these meetings is to see whether any common ground can be found regarding trade between the two dominate economies in the world. The U.S. is set to implement another $16 billion worth of imported Chinese goods on August 23rd. The U.S. dollar is being pressured lower by critical comments for President Trump. The President has publicly argued against the Federal Reserve hiking interest rates, as a detriment to the surging U.S. economy. However, the dollar also weakened when two of the President’s close associates were found guilty of tax evasion and fraud, among other charges. In other news, India continues to see slacking monsoon rains, plus an infestation of pests in key cotton areas. As the world’s second largest exporter, if this crop is significantly curtailed, it would be a bullish benefit to U.S. cotton exports. To that end, tomorrow USDA will release its weekly sales and exports data. Sales are expected higher as this report reflects the time the ICE Futures were on the decline. Close-in support for December cotton is 8237 and 8120, with resistance at 8405 and 8445.

Download App

# #

Member Login