Cotton futures are down 55 to 64 points so far on Thursday. October expired today. The US dollar index is back down $0.525 on the Friday session to $98.760, with crude oil $2.55/barrel lower and below the $60 level.
Earlier this morning, President Trump posted on Truth Social that China is becoming “hostile” in response to Chinese export control over rare earth minerals. In a lengthy post, he mentioned that he now may not be meeting with President Xi later this month in South Korea and “one of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products.” The market is being pressured by the increased trade rhetoric that is not perceived as leading to a trade deal anytime soon, nor does it ease tensions for China to come in for any ‘good will’ buying.
The Cotlook A Index was back up 50 points on Thursday at 76.55 cents. ICE certified cotton stocks were steady on October 9, with the certified stocks level at 16,471 bales.
Dec 25 Cotton is at 63.92, down 55 points,
Mar 26 Cotton is at 65.7, down 64 points,
May 26 Cotton is at 67.02, down 64 points
