The cotton market closed slightly lower Friday, as traders squared up their positions ahead of the weekend. This week saw the market suffer a very bearish crop report, but bullish export sales data.
Additionally, traders are awaiting the outcome of this weekend’s meeting between the U.S. and China.
Supposedly, this meeting was to be a routine coming together, as it was specified in the phase-one text. However, China is now talking about the need to have “favorable conditions” to conduct business with the U.S.
No doubt it is referencing the WeChat and TikTok bans. Still, as it stands, China is behind on fulfilling the requirements for this first year of phase one.
On Monday the market will see the latest crop condition information. That data may pose a very contrasting picture between how the crop is faring versus how large USDA has reported it has grown.
For the week, December cotton finished at 62.85 cents, down 0.14 cent, March closed out at 63.76 cents, down 0.16 cent and December 2020 settled at 63.57 cents, down 0.29 cent. Estimated volume was 13,414.