By admin       2019-03-06

The cotton market is a tad positive Tuesday morning, but still smarting from Monday’s bearish dive. Despite widespread talk a U.S.-China trade deal is at hand, at this stage the market wants to see concrete evidence, such as a signed agreement. As mentioned yesterday, the month of March will present several key cotton specific reports.This Friday will be the monthly supply-demand report, and on the last business day, USDA will release its planting intentions data for the 2019 crop. As of January, the new crop was projected to be massive, but poor prices and poor weather may take a bite out of those expectations.In overnight news, the China purchasing manager’s index for February came in at its lowest level since October. Also on Tuesday, The National People’s Congress, a massive annual gathering of domestic leaders, lowered its 2019 GDP growth estimate to 6.0% down from 6.5%.Chinese economic officials pledged to continue to support the domestic manufacturing sector with new stimulus spending and tax cuts. The conference acknowledged the U.S.-China trade war has negatively impacted the Chinese economy, which has likely encouraged Chinese leadership to end the trade war.There were no deliveries issued against the Spot March contract. To date, only 80 notices representing 800 bales of cotton have been issued. March cotton expires Wednesday.For Tuesday, support for May cotton stands at 73.00 cents and 72.60 cents, while resistance hovers at 73.80 cents and 74.70 cents. Overnight estimated volume is 2,770 contracts traded.

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