By admin       2019-02-08

The cotton market was sharply lower Thursday when bearish news surrounding the U.S./China trade talks emerged. About midmorning Thursday, senior White House economic adviser, Larry Kudlow, came out and said the U.S. and China “remain way apart on a trade deal.”Soon thereafter, the national business TV channels began reporting President Trump and President Xi would probably not meet before the March 1 trade deadline. All this uncertainty sent many markets reeling lower. The Dow Jones dropped nearly four hundred points, Crude fell two dollars per barrel, along with lower corn, wheat and beans.Of course, cotton hits the skids as well, plunging over 1 cent. Towards the final bell, cotton did pare its losses, but only marginally.Earlier, cotton was in its usual meandering mode, digesting the second round of delayed exports-sales data. Thursday’s report was not as dynamic as last week’s marketing-year-high report, but we did see China was a net buyer of old crop cotton for the first time in many, many months. Still, the news about the trade talks was a bearish twist the market hadn’t considered.Friday, at high noon, USDA will issue its first supply/demand report since last year. This will be a combination of January’s data coupled with February’s information. Although a reduction in the 2018 crop is expected, it will take some hefty bullish numbers to bullish effect the market’s sentiment.March cotton settled at 72.81 cents, off 0.85 cent, July finished at 75.31 cents, down 0.91 cent and December settled at 74.53 cents, down 0.03 cent.Thursday’s estimated volume was 78,250 contracts traded, which was the most single day volume since May 30, 2018. That May 2018 session’s volume was 102,792 contracts and occurred just days before the market peaked above 90-cents, when the tariffs were first announced.

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