Overnight action for the cotton market remains slow and tedious.
Despite the recent reduction in the 2018 Crop, concerns over trade war with China and a strengthening U.S. dollar is forcing cotton to play defense. Volume so far this morning is a paltry 2,500 contracts.
Even though the at-large trend remains up, going forward the market must prove itself bullish. Thus, huge emphasis is already being place on the August supply-demand report.
Weather across the southern U.S. Plains is a scorcher. Temperatures for the Lubbock area will swell over the century mark today and through Monday. The extraordinary high heat and lack of rain has not only devastated dry-land cotton, but is retarding irrigated fields as well.
For today, expect a two-sided trade, as traders await Thursday’s weekly sales and exports data.