By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market experienced a sharp decline once news of another U.S.-China meeting went badly. Over the weekend, the U.S. Secretary of State representative met with their Chinese counterpart to work out plans for a possible Biden-Xi summit.

However, the meeting soured when China accused the U.S. of being the world’s number one “bully,” or something along those lines. That revelation sent Asian stocks markets lower, along with the Dow Jones and cotton. By day’s end, both the Dow and cotton recovered into positive territory.

Monday afternoon USDA will issue its weekly crop condition numbers. Traders are somewhat torn over what the data might infer, as some feel the crop is beginning to deteriorate.

The Federal Reserve meets Tuesday and Wednesday to decide its next move for U.S. monetary policy. The U.S. dollar ended lower Monday.

Southern India Mills’ Association (SIMA) has expressed concerns over the rapidly rising cotton prices. Domestic cotton prices in India have been increasing since January 2021 and have spiked in July.

The recent hike in price per candy (355 kg) of cotton in a span of 15 days by the Cotton Corporation of India (CCI) and the 10-per-cent import duty levied in the last budget on cotton has resulted in the trade raising prices abnormally and some industries fear this trend will continue.

Monday, December settled 89.60 cents, down 0.06 cent, March ended at 89.25 cents, unchanged, and December 2022 ended at 80.75 cents; estimated volume was 18,505 contracts.