By admin       2018-12-04

News of a momentary halt in the U.S.-China trade war sent cotton prices nearly limit-up Sunday night. At their side meeting while attending the G-20 conference, President Trump and President Xi announced a temporary suspension in their trade war. For the next 90 days, there will be no new tariffs implemented and current ones will not be increased.During the 90 days, trade officials from both governments will meet to hammer out an end to the trade war. However, also during this period, China agreed to buy a massive but undisclosed amount of U.S. agricultural products. This was news which caused all U.S. agricultural markets to open sharply higher Sunday night.In other news, copious amount of rain is punishing the southeastern crop, especially Georgia. Over the weekend, the nation’s second largest state was hit with three to nine inches of rain, depending on the location of one’s farm, and it is still raining Monday. Obviously, there was additional loss of quantity and quality to a crop already ravaged by Hurricane Michael.The ICE Exchange reported ten more delivery notices were tendered against spot December. They were issued by Term Commodities, representing, we think, a major Tennessee shipper, and were stopped by SG Americas. December 2018 cotton expires this Thursday, December 6.OPEC is beginning its annual meetings in Vienna, Austria this week. Its primary mission is to tweak production to effect oil prices higher. However, Qatar, a member since 1961, plans to lead the cartel focus on natural gas production. Additionally, Saudi Arabia and Russia, a non-member, have agreed to center production cuts. Crude oil, which just last week traded below the $50 mark, has risen 5% to nearly $54.For today, support for March cotton is 79.60 cents, with resistance at 83.45 cents.

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