The cotton market continued the path set in the month of April and pursued lower levels into the first day of May. Still, after its early steep declines, the market was able to repair some of its intraday declines. Besides its mounting technical troubles undermining prices, cotton’s fundamental situation is also becoming bearish. To that end, talk of China revving up domestic auctions to sell cotton out of its strategic reserves is being seen as a negative.

Also, there is some chatter emerging from Trump Administration officials suggesting a trade deal may not necessarily happen. That too may have undermined prices Wednesday. Yet, to reiterate earlier comments, the market was able to pare its losses.

May cotton saw one delivery Wednesday. Spot May will expire on May 8.

Thursday, USDA will release its weekly sales and exports. Last week business saw decent number, but was a little slack on shipments. Nonetheless, the pace of U.S. sales is right on track with USDA’s five-year historical pace for this time of year.

The Federal Reserve kept to maintain its monetary policy, thus interest rates were left unchanged. Afterwards, the U.S. dollar declined on the news.

Wednesday, July cotton settled at 76.71, minus 0.07, December finished at 75.53 cents, down 0.16 cent, March closed at 75.99 cents, down 0.16 cent. Wednesday’s estimated volume was 36,100.