By admin       2018-10-25

After yesterday’s dramatic decline and small recovery, December cotton is trading in a holding pattern. No question after Monday’s 200 points up, followed by Tuesday’s near 200 points down, traders are overly confused and timid. Despite losses across the Cotton Belt, most recently from Hurricane Michael, the market is taking its price cues from international influences, namely the weakness in the Chinese economy. Thus far this year, the Chinese stock markets have lost about 30% of their value. Much of that loss is attributable to the current U.S.-China trade war. Now, to some degree, that financial uneasiness has bled over to the U.S. equity markets as well. Hope is something may come out of the G-20 meeting in Buenos Aries in November, when President Trump is scheduled to meet with the President Xi of China. In other news, the clean-up across the affected areas of Florida, Alabama and Georgia from Hurricane Michael is on-going. Cotton producers are firmly reporting complete wipe-outs of their crops in many locales. Farther east, the losses are less, but still run 50% plus. Harvest activities, such as they are, have resumed, which is definitely adding insult to injury. Tomorrow, USDA will issue its weekly sales and exports data. The last few weeks have absolutely underscored the terrible effects the trade war is having on both sides. To that end, our sources in India inform us the size of that crop is very much in question. Due to abnormal monsoons, as well as pink boll-worm infestations, it seems that crop will not meet its original forecasted amount. If that crop comes up short, that might also entice China to settle the trade war. For today support for December cotton stands at 7830 and 7785, with resistance about 8080 and 8280

Download App

# #

Member Login