Despite better sales and exports data Thursday morning, the cotton market could not hold together. Initially, the market did ride over the all-psychologically important 60-cent mark, but as the morning wore on, fresh speculator selling emerged and prices retreated.
News that China was planning to retaliate against the implementation of new U.S. tariffs on Sept. 1, cast a bearish pall over the financial and commodities markets. So, with the trend of cotton steeply lower, it took little effort to send prices into the negative column Thursday. Thus, going into Friday’s trade December cotton is up 70 cents on the week, but down $4.50 on the month.
The weather forecasts for many of the cotton-producing areas are showing even harsher conditions expected to unfold. The six-to 10-day forecast for West Texas calls for above normal temperatures and no rain, while the southeast will be experience continued excessively high temperatures with scattered thunderstorms.
Thursday, December cotton settled at 59.62 cents, up 5 cents, March was 60.24 cents, unchanged, and December 2020 finished at 62.96 cents, down 15 cents. Thursday’s estimated volume was 20,676 contracts.