By admin       2019-05-08

The cotton market is somewhat higher Tuesday after the blistering it took on Monday. The market, among many others, collapsed amid President Trump’s Sunday afternoon tweet threatening to increase tariffs. By the end of the session, cotton was down some 2 cents and China was threatening to be a no-show this week. However, the Chinese are still coming to negotiate the trade deal and understand they are doing so out of necessity.USDA published its latest planting progress numbers Monday, and progress is being made. The planting nation’s cotton crop jump 7% for the week to reach 18% seeded. This is 1% off from the same time last year and 1% down from the five-year average of 19% planted. Specifically, Texas stands at 15% complete, up 3%, while Georgia is 16% planted, also up 3%. Thus, the 2019 Crop is fast getting underway.The latest commitment-of-traders report, as of April 30, indicated managed money traders had reduced their net long position by 3,800 contracts to a net long position of 10,247 contracts. Naturally, after Monday’s trading debacle, that number might be expected to be all the more reduced.Overnight, the cotton did enjoy a decent snap-up, but until a trade deal is secured with China, prices are apt to congest. Of course, there are two important news events yet to come for the market. The first one will be Thursday’s weekly sales and exports report, and the Friday’s monthly supply-demand data. Also on Friday, the market would like to see a trade deal confirmed with China.For Tuesday, support for July cotton is 73.00 cents and 72.30 cents, with resistance at 75.05 cents and 75.64 cents. Overnight estimated volume is 10,060 contracts.

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