By Keith Brown DTN Cotton Correspondent
Spurred on by strong grains and a recovering Dow Jones, the cotton market was sharply higher Tuesday. Monday saw the market finish limit-down, late-selling speculators piled in the trade. However, overnight, after the market spiked to a new low, the recovery process began. Thus, the majority of all buyers were previously short-sold speculators and bottom buyers rushing into the trade.
Tuesday’s estimated volume was a stout 54,800 contracts. Wednesday’s session will be crucial to the health of the trade as if Tuesday night’s low can hold, bullish traders will grow in confidence.
Thursday’s weekly sales and exports will be another pertinent fundamental for the market to consider. Although the harshest part of the price spike occurred this week, nonetheless, last week’s trade was slightly north of 70 cents. That suggests foreign buyers saw a grand opportunity to buy U.S. cotton some 7 cents lower. It will be interesting to see if business was done.
President Trump indicated he would be meeting with President Xi next month at the G-20 meeting. Additionally, administration officials are even now seeking out dates by which the U.S. negotiating team may return to Beijing for further talks.
Tuesday July cotton settled at 66.76 cents, up 1.31 cents, December finished at 66.99 cents, up 0.59 cent and March closed 68.08 cents, up 0.46 cent.
