The cotton market closed fractionally higher Tuesday, as traders are essentially waiting on the late-week data reports. That is, Thursday morning the market will see weekly sales and exports, while Friday brings monthly supply-demand numbers as well as option expiration for the December contract. Nonetheless, Tuesday’s volume was a stout 52,493 contacts.
Such a number suggests there is fiery tug-of-war happening between short-term hedgers and speculators, and long-viewer traders. The latter clan possibly anticipates an eventual trade deal with China, which possibly will stir prices much higher into next year.
News from Pakistan suggest it may be in the market for substantial imports. Its internal cotton assessment cimittee has revised its current crop from 12.70 million bales to 10.20 million. Pakistan suffered a tough growing season filled rains, floods, insects, and high heat took their collective toll on her crop. Thus, it may be needing to import as much as 5.0 million plus bales. Given its hatred of India, and their current border troubles, it is not likely to import Indian cotton.
Tuesday, December cotton closed at 63.81 cents, up 0.15 cent, March finished at 65.47 cents, up 0.20 cent and December 2020 ended at 67.58 cents, up 0.01 cent.