By admin       2019-01-25

Overnight, the cotton market is higher but still lacks fundamental data. As subscribers know, Thursday is normally the time for sales and exports, but for the fifth week, such information will not be forthcoming.The government closure, now entering its 34th day, has choked off all necessary marketing data. Thus, the cotton market is trading by its whims and wits. There is hope next week’s trade talks with China will bear some economic fruit, but we would be naive to think all aspects of trading between the world’s two top economies could get done in two days.Technically, the trend-at-large of the market points down, but of late the ICE futures have been trading higher on a small upward plane. Yet, if no positive trade news comes from next week’s trade talks, we expect the market will punch through this support line and push down towards its January low (70.65 cents), and we fear, even lower.Such a technical move will affect the market fundamentally, as it could discourage 2019 acres.For today, close-in support for March cotton is 73.40 cents and 73.05 cents, with resistance at 74.67 cents and 75.60 cents. Overnight volume thus far is an estimated 1,505 contracts.

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