By admin       2018-09-20

This latest round of tariffs is even more alarming because for the first time the list of goods being targeted is dominated by consumer products, whereas previously it was on goods primarily purchased by manufacturers. There is greater fear this could have a more direct negative impact on the economy, jeopardizing cotton consumption and consequently pressuring prices. All can’t be blamed on these two gentlemen. USDA is doing its part too. In last week’s report, U.S. production was increased to 19.6 million bales. Most of us know at this time of year the crop doesn’t get better. It is what it is or can only get worse. Just ask our brothers in the Carolina. Considering their losses, which currently are being assessed – along with boll rot issues in other parts of the Southeast – it’s inconceivable the USDA number will be reached. If world demand can remain around 127 million bales, fundamentals should continue to support prices upward of 80 cents. At some point, China will be forced to negotiate as we have the upper hand in this tariff battle, importing more goods than they do.

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