By admin       2018-12-13

After enduring a supply-demand report which was essentially negative, March cotton is quietly unchanged Wednesday morning. A quick recap of Tuesday’s USDA saw a 180,000-bale increase to the U.S. crop and unchanged exports, resulting in a slight increase in domestic ending stocks. World carryout was also increased, despite production cuts to the top five producing countries. Bottom line was the report was not bearish enough to encourage new selling.We understand the U.S.-China trade talks are making some tangible progress, at least that is the word for both sides. Yesterday, the two sides laid out their respective schedules for several meetings and talks for the next ninety-days. The marketplace is hoping the world’s two largest economies can resolve their differences, as the result would be a boon to the global marketplace.The Consumer Price Index, a measurement of inflation, will be a key economic report this morning. The CPI is forecast to be unchanged from October. Recent U.S. inflation reports have shown very subdued inflation.Tomorrow USDA will release its weekly sales and exports numbers. Judging from Tuesday’s crop report, sales will span a range of customer nations, but China is apt to show more cancellations. However, based on China’s promise to immediately buy U.S. agricultural products at the outset of the trade negotiations, it may be January before we see participation in the 2018/2019 crop year.Technically, the cotton market is in the throes of a bottoming. Typically a seasonal low will emerge during the October-November-December harvest window. For March cotton that low, thus far, came on October 1. A trade agreement between the US and China would solidify that low.For March cotton today, close-in support will be 79.50 cents and 78.90 cents, with resistance at 81.85 cents and 83.85 cents.

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