By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market could not rebound Tuesday, and in fact it extended its losses since posting its April high of near 58 cents. Producer fixation selling and fears of a bearish twist in U.S./Chinese relations are the underlying bearish fundamentals.

Producers who placed their 2019 production on a price-later status are beginning to feel the clock work against them. Although May cotton is in delivery and expires Wednesday, first notice day for the July cotton is July 24, or some seven short weeks away.

Additionally, recent comments from President Trump over China’s responsibility concerning the coronavirus pandemic has some political analysts suggesting a 21st century Cold War is in the making. Such a situation could slow trade, perhaps even negating the phase-one treaty altogether.

On Sunday, U.S Secretary of State Mike Pompeo said there was “a significant amount of evidence” that the new coronavirus was hatched in Chinese laboratory near Wuhan.

Wednesday, May cotton does expire, and the importance of that event relates to whether spot May closes premium or discount to the next-in-line July contract.

Tuesday, May cotton closed at 53.91 cents, July ended at 53.58 cents, down 0.75 cent and December settled at 55.42 cents, down 0.82 cent. Estimated volume was 23,080 contracts traded.