Early on in the session Thursday the cotton market traded 1.00 cent higher as optimism of an eventual China trade deal swept across the agricultural futures. Wednesday, it was rumored that China bought several cargoes of U.S. soybeans, and that, along with South American weather concerns, sent bean prices markedly higher.

Thursday that trade optimism permeated cotton and corn, even though the Dow Jones was steeply lower. To its credit corn finished stronger while cotton fluttered to near unchanged levels. A U.S. trade delegation leaves January 7, heading for Beijing China.

Friday, USDA was to issue its delayed weekly sales and exports data, but due to the government shutdown, that report has been suspended. There is a strong chance next week’s all important monthly supply-demand report will also be a no-show.

Technically, the cotton market remains in a steep down trend, as the last 11.00-cent decline has occurred over the last month. That is, on December 3, March cotton was 81.85 cents, while Thursday, January 3, it settled 70.83 cents.

By anyone’s take, to push the short side from here may prove treacherous. If the Dow were to experience an end-of-the-week short-covering rally, such would not be lost on the cotton market, a very economically sensitive commodity.

Thursday estimated volume was 29,200 contracts traded. March cotton settled 70.83 cents, down 0.01 cent, July cotton was 73.65 cents, up 0.07 cent and December was at 72.59 cents, up 0.26 cent.