December Cotton staged a late session rally after suffering punishingly bearish supply-demand data. Traders were expecting a small decline in U.S. production, but such was not the case. The government agency saw fit to raise the domestic crop some 445,000 bales. Additionally, U.S. ending stocks increased by 100,000 bales.

The world carryout saw a 360,000 bale increase. Interestingly Brazil’s exports were up 200,000 bales, no doubt an unintended consequence of the U.S./China trade war.

However, also in late session came the word U.S. and China were attempting to set a new meeting date to discuss trade and the tariffs. This news not only rallied Cotton, but brought Soybeans off of their lows as well.

Thursday, USDA will issue its weekly sales and exports data. Last week’s numbers were patently bearish.

Wednesday’s estimated volume was 26,200. December cotton closed 8264 down 25, March was 8303, down 28, December 2019 was 7777, down 28.