By admin       2019-04-30

Cotton is higher Monday morning as the market remains hopeful of a U.S.-China trade deal. This week a U.S. delegation returns to China to press for an agreement. However, there is a scheduled return visit by the Chinese to Washington around May 8.To that end, as the market approaches the new month, hopes for a deal swell even higher as some in the Trump Administration have previously suggested a signing ceremony will happen on May 18.Monday afternoon USDA will publish its weekly planting progress numbers. Thus far, the 2019 Crop is going in unencumbered. However, there are expectations for rains this week from Central Texas into the Delta. The Southeast look dry until Saturday. Nonetheless, it would not surprise us to see the final acres number in June surpass those acres intended of last March.Spot May remains in delivery, and there were 3 notices issued today. The tenders originated from Wells Fargo, but were stopped by Term Commodities.Another key report this week will be Thursday’s weekly sales and exports. Of late, business has been brisk. As of April 18, cumulative sales are 97.9% of USDA’s target versus the five-year average of 97.1%. If China were to now show up in a big way, it would be a much-appreciated better-late-than-never moment.For today, support for July cotton stands at 76.80 and 75.95, with resistance at 78.30 and 79.60. Overnight estimated volume is 5,536 contracts.

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