The market was lower overnight as USDA reported unchanged crop condition data in its weekly report. Given the reduction in bales just seen last week in the July supply-demand report, plus the current harsh weather unfolding in West Texas, the market was banking on a worsening situation to inspire the 2018 crop to rally prices over ninety-cents.
However, USDA indicated the crop moved neither forward nor backward in its development.
As it stands, the 2018 crop is rated 41% good/excellent versus 42% last week. Texas actually improved to 23% good/excellent, up from 21%, while Georgia eased off to 68% good/excellent, from 69%.
As the summer doldrums wear on, the market will likely chop about this week, knowing the crop is in full development, while still living in fear of bearish Chinese response to tariffs.
Volume thus far is a muted 2,200 contacts.