By admin       2019-02-26

The cotton market is higher Monday after its massive break on Friday. The Friday decline occurred as traders saw USDA’s six-week summary of delayed sales as average. The total number was less than the anticipated one million bales sold expectation. However, into the close, futures managed to cut their losses to a respectable double-digit loss.The better news came yesterday when President Trump announced an extension for the U.S.-China trade talks. Those meetings had been operating under a March 1 deadline, which calls for increased import taxes on all Chinese goods.However, in the eyes of the President, the talks were progressing enough to warrant the extension. The response from Asia was very positive, as stock markets there rallied to their highest level in four years.Spot March cotton is in its delivery period, to which there were no deliveries issued on Friday, but ten contracts were tendered today. The issuer was Morgan Stanley, with Wells Fargo the stopper.With all of its delayed cotton data now public, the next major report the market will key in on is the March supply-demand report. The February report indicated a reduction in old crop and ending stocks. Still, it is thought the 2019 crop will be much larger, as private polls have shown increased acreage among producers. Interestingly, this notion is somewhat in conflict with USDA.At its annual agricultural forum, which ended Friday, 2019 acres were pegged just one percent more than 2018 acres, and well below private industry expectation. Thus, it will be interesting to see how the differences pan out.For Monday, support for May cotton is 72.90 cents and 71.85 cents, with resistance at 74.11 cents, and 75.16 cents. Overnight estimated volume stands at 3,850 contracts traded.

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