By Keith Brown DTN Cotton Correspondent
The cotton market finished moderately higher Wednesday, but on one of the lowest, volume days of the season. In fact, Wednesday’s volume was reminiscent of any given Christmas Eve. At any rate, the market is waiting on fresh news. Some of the much-needed market-moving news may come as soon as Thursday, when USDA will release its weekly sales and export data. Last week, saw sales of 155,000 bales, with shipments of 175,000 bales.
However, the more serious news may emerge next week when USDA issues its monthly supply-demand estimates for September, followed by that same day, the U.S.-China trade talks. Unfortunately, with all the news media talk of the impeachment of President Trump, the Chinese may have less of an incentive to come to terms.
The Dow Jones was sharply lower Wednesday, as the financial markets fear a possible recession unfolding, plus the continued pounding by the news media and the Democrats on impeachment. Theoretically, a falling Dow Jones might cast a negative cloud over the cotton market.
Most likely, the market will trade above the 60-cent mark until such time the 2019 Harvest either confirms or denies the existence of a massive near 22.00 million-bale crop.
Wednesday, December cotton settled 61.33 cents, up 0.35 cent, March closed at 61.98 cents, up 0.32 cent and December 2020 ended at 64.33 cents, up 0.39 cent.