December cotton finished slightly higher Wednesday, correcting Tuesday’s oversold condition. Tuesday saw a steep decline as speculators liquidated long holdings as the U.S. and China continues to rates the economic stakes in their on-going trade war.
However, since the market saw little follow-through selling last night and Wednesday morning, speculates held up on their selling and bullish bottom pickers were encouraged to take a stab at the long side.
Technically, December cotton remains wounded as the market closed below its all-important psychological 80-cent mark. Most likely, that price level will now become future resistance. Also, most technical indicators have painted the market a negative slant.
Thursday, USDA will publish its weekly sales and exports report at 8:30 am. The last few reports have revealed very slow sales, but Thursday’s may show net cancellations. To that end, China, Turkey and Pakistan have been at geopolitical and economic odds with the U.S. in recent months.
Estimated volume was 34,100 contracts. December cotton settled 7872, up 20, March 19 closed 7915 -, up 2, and December 19 closed 7615, up 14.