Cotton closed moderately higher Thursday, as the market weighed the bullish prospects of the now-scheduled U.S.-China trade talks for October, as well as Hurricane Dorian.
To the latter, Dorian, which is downgraded to a category 2 hurricane, could still make landfall in North Carolina. Farther south, it has already flooded parts of Charleston’s historic district, resulting in 220,000 residences losing power. North Carolina roughly produced a 700,000 bales crop in 2018.
As far as the U.S.-China trade talks, little is known other than that the two nations will meet in Washington. As of this writing, the date and time certain has not been published. However, over the summer it has become evident to both economies to comprise and get an agreement done.
Friday, USDA will issue its weekly sales and export report. That data will reflect the proves of cotton some 10 days ago, when it was trading closer to 60-cents. Yet, December cotton has been trading under the 60-cent mark for six weeks, and there have been no booming sales.
Also Thursday, the Labor Department will issue its monthly jobs report for August. Expectation are calling for 3.7% unemployment, with 160,000 new jobs added. Last month, non-farm payrolls tallied 164,000 jobs.
For Friday, December cotton closed at 59.12 cents, up 0.91 cent, March finished at 59.82 cents, up 0.99 cent and December 2020 closed at 62.00 cents, up 0.64 cent. Overnight volume 23,480 contracts.