ICE December cotton futures closed higher Tuesday on several fundamental factors.
December cotton held a positive day Tuesday, although its prices were stronger earlier in the session. After ticking just above the 8400 mark in early morning trade, the market retreated to finish moderately higher. Several fundamental factors figured into the day’s trade, including a weaker U.S. dollar, slow developing monsoons over India, and a growing drought in Australia.
Wednesday, the U.S. and China will kick off mid-level trade talks. The hope is both sides will work towards mending those trading fences. We are not sure if cotton will be specifically be mentioned, but it will be part of an agricultural discussion package, which will include soybeans, cattle, and hogs.
December cotton settled at 8325, up 55, March 19 went out at 8343, up 56, and December 19 closed at 7773, down 17. Estimated volume was 18,200 contracts.