The cotton market concluded its Friday session with triple-digit gains. Speculators were definite buyers as they continued to add to their long positions. This notion of speculative buying originates with the rise in open interest. That is, a generally accepted principle in trading says when price and open interest rise together, it is reflective of new longs entering the market.
This week saw some very supportive fundamental news unfold in the market. There was the phase one deal with China, the passage of the USMCA, NAFTA’s replacement, a strong weekly exports-sales repor, and the Dow Jones stoutly above 29,000-plus. Yet, for the week, the cotton market ended six points lower than last Friday’s settlement.
The market is closed on Monday in observance of the MLK Holiday. Trading will reopen this Monday night at 9 p.m. That delay will push weekly exports-sales back to Friday.
For Friday, March cotton closed at 71.25 cents, up 1.03 cents, July ended at 73.06 cents, up 0.98 cent and December finished at 72.37 cents, up 0.48 cent. Estimated volume was 32,285 contracts traded.