By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market posted a very tight session Wednesday as traders continue to monitor the many floating fundamentals.

The cotton market posted a very tight session Wednesday as traders continue to monitor the many floating fundamentals. Those situations include a faltering phase-one deal, coronavirus fallout and anger over China’s security law for Hong Kong. Any or all of those aforementioned situations could permanently upend the U.S.-China relationship.

Traders are also eyeing Friday’s delayed weekly export sales. The hope is that sales will be positive and that China will be a substantial buyer. As long as China’s negative words are not said in conjunction with negative actions, the market may hold its positive gains. Also, this Friday is the end of the month, which might bring in position squaring by speculators. Currently, managed money funds are net short the cotton futures, but not as deeply as they once were. Thus, any sort of price incentives, either technical or fundamental, may open the door for padding their bearish positions or reducing them.

With next week being the start of June, traders and hedgers, whom are holding options and price-later contracts, will begin to feel the squeeze of lost time. Every passing day their portions will continue to be painted into the proverbial corner.

July cotton closed at 58.34 cents, up 0.11 cent, December ended at 58.03 cents, 0.03 cent and March settled at 58.98 cents, up 0.11 cent. Estimated volume was 20,136 contracts.