The cotton market finished impressively stronger Wednesday, as traders positioned themselves for Thursday’s USDA reports, as well as the three-day Easter weekend.
First, at 8:30 a.m. weekly export sales are due. If there are no serious cancellations, plus triple-digit sales, the market will view that as a positive. Then, at high noon, USDA will issue its monthly crop data. Several things to watch will be China’s domestic usage and world carryout, plus possible reductions in U.S. 2019 production, complemented by increased exports.
Afterwards, traders may “bolt for the doors” to get a jump on the holiday, except this holiday will be like no other as most of the country is in isolation.
Thursday Saudi Arabia and Russia are scheduled to meets via the internet to discuss production quotas. Currently both countries are in an energy war, which has taken fuels down to 15-year lows.
However, if some sort of agreement is reached to limit production, then the energies can rally. Cotton is always interested in crude oil, as it is the primary ingredient for making synthetic fabrics.
May cotton closed at 53.84 cents, up 0.94 cent, July ended at 53.94 cents, up 0.78 cent and December settled at 55.37 cents, up 0.89 cent. Estimated volume was 62,858 contracts.