Cotton closed higher Monday, but its net change was barely double-digits. Initially, the market saw some spillover strength from Friday’s rally. That end-of-the-week run-up was attributable to the positive trade comments made between the U.S. and China.
In fact, the market chose to ignore putrid weekly sales and export data, as well as demonstratively bearish monthly supply-demand report to rally to nearly limit-up status. Monday against the backdrop of the Saudi oil attack, the market was much more muted.
Monday afternoon USDA will report on the size and scope of the 2019 crop. That is, the crops current condition and well as any harvesting activity. Of late, the crop is thought to be going backwards in its development due to weather adversities which have plague it all season long.
Speculators have greatly pared their bearish positions, from a peak of 49,000 short-sold contracts to the last recorded number of 32,000 contracts. Also, some analysts believed producers will soon be aggressively selling as the 2019 harvest gets underway.
For Monday, December cotton settled at 62.59 cents, up 0.31 cent, March closed out at 62.96 cents, up 0.18 cent, December 2020 ended at 65.47 cent, up 0.41 cent. Monday’s estimated volume was 30,600 contracts.