By admin       2019-05-29

The cotton market was strong Tuesday amid weather concerns and run-away grain prices. The weather concerns traverse the length of the Cotton Belt, but there was noted emphasis on the Southeast. For much of Dixie, temperatures are soaring into triple-digit levels, with no rain on the horizon.Yet, both west Texas and the Delta are likewise dealing with their own weather adversities, but those are coming in the form of too much rain. Additionally, cotton was also sympathetically influenced higher by swelling grains prices. Chicago corn posted one-year highs Tuesday.All eyes will be on Tuesday afternoon’s weekly planting progress report, with dry weather plantings ought to have increased, but with the current dry conditions and the seven-day outlook calling for drier soil, traders may want to build in a weather premium.The most recent commitment-of-traders report indicated managed money speculators hold a net hefty net short position. In the past few sessions they allegedly sold some 12,400 contracts. Such depth of shorts could possibility fuel new buying.China continues to be a seller of domestic cotton from her state reserves. Monday it sold roughly 38,000 bales, and stands to sell tonnage every day this week. Such action may reduce futures imports.For Tuesday, July cotton settled at 69.47 cents, up 1.08 cents, December 68.47 cents, up 0.92 cent, and March finished at 69.01 cent, up 0.67 cent. Estimated volume was 37,671 contracts.

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