By Keith Brown DTN Cotton Correspondent
After an early Monday morning rush over the 68-cents, the cotton market reeled lower, barely closing positive on the day. Of course, the basis for the bullish start was the Saturday news the U.S.-China would renew trade talks. Thus, Sunday night saw a huge higher gap opening. That technical event infused bullish traders with enthusiasm.
However, with Speculators holding a record net bearish position, the rally was short-lived. Prices lost most of the early gains. Monday’s estimated volume was roughly 32,000 contracts traded.
Monday afternoon, USDA will report on the 2019 Crop’s planting progress, as well as condition. Ordinarily, by this time of the season, the crop should be fully planted. However, spring weather delays caused some acres to fall behind. In fact, those may never get planted. Last week saw the condition of the Crop to be 50% good-to-excellent.
Looking ahead, weekly sales and exports report will be delayed until Friday morning, given Thursday is Independence Day. As new crop sales stands the five-year average for this time of year is about 21.5% of USDA’s forecast. Currently, sales for the 2019-20 season are pacing some 25.3% of the government’s projection.
July cotton remains in delivery, and Monday it settled at 63.17 cents, its highest close since delivery commenced. It expires this coming Monday, July 9.
Other settlements include December Cotton at 66.58 cents, up 0.50 cent and March cotton at 67.42 cents, plus 0.73 cent.