Cotton is markedly higher this morning as traders anticipate “good things” to emerge from the China-U.S. trade talks. Those renewed negotiations commence tomorrow and as of now, run through Thursday.
If these particular talks go well, there is a high probability President Trump and President Xi will meet in November to ink a new deal. In other trade news, the U.S. and Mexico are set to sign a new NAFTA-like trade treaty in the very near future.
Yesterday, USDA reported the 2018 crop improved in its total condition. The overall crop was up 2 percentage points at 42% good/excellent. This is down 21% from last year and 8% off the ten-year average. Of the top 15 states, 9 reported better, 4 were worse, and 2 were unchanged in their respective good/excellent ratings.
India is reporting a ten percent drop in normal monsoonal activity. In addition, field scouts are indicating a rise of pest activity. Last year, pink boll-worm infestations took a heavy toll on India’s production.
Close-in support may be found at 8280 and 8145, with 8525 and 8640 as key resistance.