DTN Cotton Close: Market Awaits USDA Data

DTN Cotton Close: Market Awaits USDA Data

By Keith Brown DTN Cotton Correspondent 

The cotton market was virtually directionless in its trading Monday. The market, as with so many other markets, is in the grip of impeachment fever. The impeachment movement of President Trump nearly paralyzed most financial and commodities markets.

However, there will be cotton specific news to be released this week. Monday at 4 p.m., USDA will report on the progress of the U.S. harvest. Last week, the market was 16% gathered. Then this Thursday USDA will release its weekly sales and exports data, as well as its latest supply-demand estimates for October.

As of now, traders are expecting a reduction in the 2019 crop as well as a cut to current export projections. If that is the case, the “carryout needle” may not move that much either way.

Of course, the big event will be Thursday’s resumption of the U.S.-China trade talks. Given the high level of vitriol against President Trump by the Democratic House, the Chinese may decide to “play along” but agree to no deal.

Monday, December cotton settled at 61.83 cents, up 0.16 cent, March finished at 62.57 cents, up $0.15, and December 2020 ended at 64.82 cents, up 0.21 cent. Monday’s estimated volume was a slow 19,029 contracts traded.


Source: Agfax
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