By admin       2019-02-26

The cotton market was slightly up Monday on low volume. Earlier the market had traded higher, inspired by the rising new optimism regarding the U.S./China trade talks. That surge of hope stemmed from the Sunday afternoon announcement from the White House that the deadline for having a trade agreement was waived.Moreover, there are now expectations for the U.S. and China to sign a comprehensive trade deal in late March. However, cotton received no outside help as crude oil was lower, and with weaker Chicago grain markets.Most likely, the market is still smarting from the bearishly construed catch-up sales and exports report issued last Friday. Based on the reported amounts for the prior six weeks, neither sales nor shipments were to the levels that would allow cotton to meet its preordained targets set by USDA.Additionally, data from USDA’s annual agricultural forum of Friday did in fact project a year-over-year increase in planted acres, which potentially suggests to a much larger increase in domestic ending stocks.The February 5 commitment-of-traders report indicated index traders net bought some 5,000 contracts and currently stand net short some 6,600 futures contracts. Non-commercial accounts are supposedly net long nearly 10,000 contacts.May cotton settled at 73.10 cents, up 0.09 cent, July was at 74.33 cents, up 0.16 cent and December was at 73.58 cents, up 0.07 cent. Estimated daily volume was 20,900 contracts traded.

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