Cotton did show some overnight price recovery, yet the market is easing lower Wednesday morning. An advancing dollar and falling Dow Jones may be making speculative traders nervous. To that end, spot March remains meekly just below its 83.06-cent high of last week. The longer that top lingers, the more validation from traders it will receive.
Thursday at 8:30 a.m. EST USDA will issue its latest weekly export sales report. The big worry there is whether the expanded ban on imported Chinese textiles by the U.S. will affect business. China has been accused by the West of using slave labor to help farm fields and run factories in Xinjiang Province.
The Federal Reserve is meeting and will make its announcement on monetary policy Wednesday at 2 p.m. EST. No changes are expected. However, the Fed stands prepared to continue to take printed money for the U.S. Treasury to increase the Government’s debt load to shore up the economy.
For Wednesday, close-in support for March cotton is 81.30 cents and 80.80 cents, with resistance at 83.10 cents and 83.50 cents. The current estimated volume is 11,245 contracts.