The cotton market finished higher Wednesday as it continues to weigh the NCC’s fewer acres survey and the possibility of China returning back to work. That private acres survey speaks for itself and serves to set a momentary benchmark level for traders to watch.
However, USDA will publish its official acres Intentions on March 29. Then the 2020 growing season will be filled with the normal fundamentals of weather and insects, which can add or subtract from production.
The news of China suggests the country is returning back to work, although that remains a slow process. The virus is nowhere thought to be contained, but officials in Beijing are anxious to see the country recover and pursue strong economic growth.
To that end, President Xi has publicly indicated to those infected provinces to combat the disease but maintain planned productivity directives. Hmm, easy for them to say. Anyway, the Central Bank of China continues to pump stimulus into the economy, while Beijing is lifting some import duties on nearly 700 individual U.S. products, including agriculture and energy.
The cotton market is anticipating equally strong exports-sale data on Friday, but Friday is also the last day for producers to square up their cash positions ahead of spot March’s delivery period. That FND commences on Monday and continues through March 9.
Wednesday March cotton settled at 68.48 cents, up 0.61 cent, July ended at 70.47 cents, up 0.77 cent, December closed at 70.24 cents, up 0.80 cent. Estimated volume was 48,839 contracts.