Week-over-week, the cotton market was nearly 340 points higher. Yet, it had to wade through a plethora of reports and events to get there. Initially, was Monday’s crop condition data from USDA, which showed the 2018 Crop fractionally deteriorated. That news was slightly friendly.
Then on Tuesday afternoon the Trump Administration announced another and strong round of possible trade tariffs against China. The fear and uncertainty of that event was hugely bearish, and sent prices reeling lower on Wednesday.
Finally on Thursday, the market saw improving sales and exports data, but bullish supply-demand data. In response, all contract months traded and closed at limit-up. However, Friday’s session was marked by weekend profit-taking and fears of retaliation, if any, China might employ.
Total volume for the week was estimated at 110,000 contracts, the highest in two weeks. Weekly open interest was estimated at 255,165, up some 2,500 contracts. The increase suggests new long traders have re-entered the trade.