Keith Brown DTN, Contributing Cotton Analyst 

The cotton market finished sharply lower Monday as tensions between the U.S. and China are beginning to rise. At the center of the fuss are the accusations coming from the Trump Administration that China bears the responsibility for creating, and then covering up, the wicked effects of the COVID-19.

China denies the allegations. In fact, in recent weeks, China has attempted to turn the tables on the U.S. by claiming it was the U.S. that actually planted the virus in China to make it look guilty. Currently, there are several ongoing investigations to pinpoint the initial start and source of the virus.

Some U.S. officials have suggested if China is indeed guilty, then additional U.S. sanctions should be applied. Thus, driving cotton lower and bearishly affecting the grains as well.

Monday afternoon, USDA will issue its weekly planting progress report. After several days delay, Southeastern producers are resuming their planting efforts. The next acreage report from USDA will come at the end of June.

Technically, July cotton halted at its 38% retracement. However, most traders were assuming the market would trade up to the 50% level of 61.00 cents, but the trade language over the weekend pressured prices.

Monday, July cotton closed at 54.33 cents, down 1.51 cents, December closed at 56.24 cents, down 1.28 cents and March finished at 57.53 cents, down 1.09 cents. The session’s estimated volume was 25,963 contracts.