By admin       2019-04-29

The cotton market was lower Friday as it seemingly lacked the will and the wisdom to trade up. It has been a choppy week marked by speculative selling, scant deliveries against the May contract and tepid weekly sales and exports. As it stands, the old crop market is down 0.57 cent and the new crop 0.80 cent lower for the week. In its stagnant trade, the cotton market sloughed off a strong Dow Jones and a very strong first quarter GDP growth of 3.2%.The market is moving beyond the midway point of its spring marketing window. As the 2019 crop is being serenely planted, there are growing fears its final acres will exceed those of USDA March Intentions.Next week, USDA will report on the planting progress of the crop, as well as fresh sales and exports, and May cotton’s continued delivery process. In two weeks, USDA will issue its May supply-demand report. In that data, the government will make a stab at world new crop production.Although the U.S. dollar is at a two-year high, it did bend lower Friday on the strong GDP data. Still, the height of the dollar is a hindrance to cotton exports. In fact, even if a trade deal with China gets done, a strong dollar can still have the effect of a tariff.Friday, July cotton settled at 77.70 cents, down 0.62 cent, December at 76.19 cents, off 0.52 cent and March at 76.56 cents, down 0.28 cent. Volume was an estimated 21,700 contracts.

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