By Keith Brown DTN Cotton Correspondent
July 11, 2019
The cotton market finished lower Thursday on poor weekly export-sales data, plus a neutral-to-negative supply-demand report. Both crop year’s sales combined did not tally over 100,000 bales. China also cancelled 10,000 bales in the old crop numbers and bought none in the new crop. Of course, China and the U.S. remain engaged in trade talks, which have yet to yield any resolution.
Thursday’s supply-demand numbers were essentially a non-event as most of the adjustments came within the beginning stocks categories for both the world and the domestic data. Thus, all eyes are now squarely affixed on the August crop report. That is the issue whereby USDA reports a yield per acre tally.
The market’s trend remains steeply lower as December posted another life-of-contract low Thursday. However, volume was less Thursday than Wednesday. Over the past few weeks, speculators have become excessively short and their behavior is punching out harvest-like lows in July!
Traders are watching soon-to-be Hurricane Barry. It will make landfall in the New Orleans area and may potentially threatened the South Delta crop. December cotton settled Thursday at 63.08 cents, down 0.74 cent, March closed 64.20 cents, down 0.86 cent and December 2020 ended at 66.04 cents, down 0.76 cent. Estimated volume was 21,201 contracts. (Source: Agfax.com)