December cotton finished 100 points lower as little bullish enthusiasm was seen. Outside markets and bearish news over the President Trump’s potential involvement with two convicted associates seem to dissuade speculators from entering the trade. Thus, with a lack of buying, cotton sank towards the 8200 mark.
There was no news on the progression of the U.S.-China trade talks Wednesday. Expectations are low for any sort of serious deal to be agreed upon. Nonetheless, the fact the two sides are talking is something of a market positive.
Technically speaking, Cotton’s 100-day trend is sideways to down. Moving averages remain hooked bearish, while momentum indicators are bland.
Thursday, USDA will issue its weekly sales and exports report and hopes are for a more meaningful sales numbers to emerge. Thursday’s report reflects the period of time when December cotton posted its lowest low price of 8060.
December cotton settled 8229, down 96, March 19 was 8264, down 79, and December 19 was 7727, down 46 points. Estimated volume was 15,200 contracts.