By admin       2019-05-14

The cotton market finished limit-down Monday as speculator selling overwhelming any and all bullish comers. Volume was huge at an estimated 68,100 contracts. The basis for Monday’s sell-off revolved around the fears of an expanding trade war with China.To that end, China announced it would be placing tariffs on $60 billion of imported U.S. goods. There were also some veiled threats from China about devaluing her yuan, and/or selling U.S. Treasuries.Monday afternoon, USDA will announced its latest data on planting progress for the 2019 crop. It seems odd for the new crop to be flashing prices more associated with harvest levels, when 50% of the crop has yet to be seeded. So for the moment, it’s all about emotion and psychology.Monday afternoon, President Trump came out and mentioned a plan that the U.S. government would buy up domestic food and fiber production for use in some sort of international humanitarian aid. Those details were sketchy.The president also indicated he would be meeting with China’s President Xi at the G-20 Summit in June. We’re sure the markets will have high expectations for that meeting.Monday July cotton settled at 65.45 cents, minus 3.00 cents, December was at 66.40 cents, down 3.00 cents and March closed at 67.62 cents, off 2.75 cents.

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