By Keith Brown DTN Cotton Contributing Analyst
The cotton market spent all session Tuesday underwater as hefty deliveries and a strong U.S. Dollar prevented any sort of bullish enthusiasm from building. Earlier, a Tennessee exporter tendered some 400 delivery notices against the spot December. The fact a cash shipper was making delivering of actual bales cast a negative pall over the trade. To date nearly 600 notices, or 60,000 bales, have been tendered against the spot month.
The U.S. Dollar was up Tuesday in response to Mr. Trump’s comments that new and strong tariffs would be laid on China if no progress was seen at this weekend’s G-20 meeting. Additionally, the Dollar is anticipating Fed Chairman Powell to reiterate the Fed’s need to hike interest rates at its December meeting is a scheduled speech Wednesday. Technically, the market remains in a steep down trend, although the October-November-December window is the prime time to see an annual low to be posted.
Naturally, a solution, or a clear path to a solution, of the U.S./China trade war would play a huge role is nailing down that last low. To that end, estimated volume was 15,500 contracts. It was the lowest volume session since September 17.
Spot December settled at 76.77 cents, down 0.63 cent, March closed at 77.88 cents, down 0.70 cent and December 2019 finished at 76.62 cents, down 0.35 cent.