The cotton market closed out Tuesday’s session higher, but somehow the better close did not reflect the underlying friendlier news. Over the weekend, the NCC issued its 2020 acres membership survey, which showed fewer acres and thereby the potentiality of a slightly smaller crop.
Also over the weekend, China supposedly lowered import duties on several hundred U.S. products including agricultural and energy commodities. Still, from Tuesday’s settlements, one wouldn’t know it.
China continues to work vigorously to contain the coronavirus. Besides all the quarantines and hygienic programs she has initiated, the Central Bank of China is freely pumping stimulus into the economy.
This Friday is the last day before spot March’s delivery on Monday. Thus, producers must either fix or roll out to another month before Friday’s session close. The spread between March and May closed Tuesday at 1.00 cent.
Due to the President’s Day holiday on Monday, weekly sales and exports will be delayed until Friday. The last three weeks of exports-sales have been nothing short of super. Two of those three weeks saw record sales, while one reflected record shipments.
For Tuesday, March cotton closed at 67.87 cents, up 0.46 cent, July ended at 69.70 cents, up 0.42 cent and December finished at 69.44 cents, up 0.38 cent. Tuesday’s estimated volume was 58,475 contracts.