By admin       2019-02-22

Cotton is sharply higher overnight as comments made by the President concerning the U.S.-China trade talks were seen as supportive by the trade. Essentially, he said that the talks were going great and that “agriculture will do very, very well”. Then he specifically singled out corn as a beneficial market in particular. Corn, cotton, beans, and wheat are all higher.Of course, cotton was already in an oversold state, so any sort of positive news was bound to send prices higher. The U.S.-China trade talks rise to an elevated level today as vice-Premier Liu He, China’s number two man, will attend the two-day talks.The deadline for reaching a deal was originally March 1, a week from tomorrow. However, President Trump has shown a willingness to extend that date provided talks are progressing, at least in his eyes. Also, he leaves for Vietnam next week for meeting with Chairman Kim of North Korea, so we suspect the trade date deadline will be pushed farther out.Tomorrow, USDA will publish its long-anticipated catch-up sales and exports data. This release will bring all delayed data up-to-date. Also, USDA is hosting its annual agricultural forum Thursay and Friday. There will be some sort of cotton acreage projections made based on historical numbers.March cotton enters its delivery tomorrow, and the market will be watching for any potential impact if any deliveries indeed occur.For today, support for May cotton is 70.60 cents and 70.00 cents, with resistance at 73.00 cents and 73.75 cents. Overnight estimated volume stands at 13,300 contracts traded.

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