By admin       2018-09-24

Tariff nervousness plagued the cotton market all week as December futures momentarily broke below longtime support at 79 cents. However, going into the weekly close, the market was trying to hold the price support line. Prices are hovering around that level, so all is not lost just yet. I was one of those suggesting that the market would not suffer from the tariff as world cotton trade needs the U.S. crop that otherwise would have gone to China. I was wrong. Finally, I can’t blame this one on USDA. The fact remains, tariff talk spooked the market lower. The fundamentals have not changed, but speculative traders forged a crack in cotton’s armor and took profits. It is critical that the 79-cent price support hold if prices are to return to 80-84 cents. Loses to Hurricane Florence are being made up by improving crops in all other regions. At present, the only U.S. cotton moving into China is WTO quota cotton. New sales to China are not part of new export sales listing.

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