By admin       2018-09-20

Since trade tariffs were first rumored in early June, cotton prices have fallen 17%. With each punch thrown, we’ve seen the market slip to another lower trading range, first the mid-80s followed by the lower 80s. I would hate to imagine where prices might be without the support of strong fundamentals. Yesterday, the school yard bullies were at it again. President Trump announced a 10% tariff would be imposed on $200 billion worth of Chinese imports beginning next Monday, with another 15% later if China retaliated. Without flinching, China’s president quickly countered with a tariff on $60 billion worth of U.S. imports. As a result, cotton prices plummeted 264 points to close at 78.52. Crossing below all moving averages, prices fell into the 70s for the first time since mid-May. Currently, we are in uncharted waters, unknowing as to their next move. Sound pricing decisions become very difficult.

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