By admin       2018-12-18

The cotton market is expecting another week of tight and tedious trading given it is the week before Christmas. Besides the slowness of the holidays, the U.S.-China trade talks are equally slow as well.Moreover, there is the possibility of a U.S. government shutdown over the border wall, trouble with the Brexit situation, and potential for higher interest rates this week, so discouragement for would-be buyers in cotton is running higher.Still, it’s not all negative news. There are hopes China may soon announced new economic initiatives to stimulate the economy. China’s central bank made an unexpected injection of money into its financial system Monday. Last week’s numbers showing ailing Chinese retail sales data and falling industrial output are the reasons behind this potential new wave of support.The Commitments of Traders report as of December 11 has the non-commercial trader net long 48,600 contracts. That is an increase of 1,354 contracts. Index traders held a net long position of 81,278 contracts, an increase of 1,314 contracts. Apparently, a large bullish position is building into 2019.Cumulative U.S. sales as of December 6 stand at 70.5% of USDA’s forecast for the entire season, with the 5-year average being 62.5% sold. Although China has been an obvious canceler of old crop purchases, but a noticeable buyer out in the 2019/2020 contracts. It is it hoped, based on dwindling global stocks, China will soon be a buyer of U.S. cotton.For today, support for March cotton is 80.20 cents, and 80.60 cents, with resistance at 83.00 cents.

Download App

# #

Member Login