Cotton jumps 3% on higher grains, Trump-Xi meet focus
ICE cotton futures recovered on Monday from the previous session's seven-week low, tracking gains in broader agricultural markets. The most active second-month December contract rose 2.3 cents, or 2.87%, to 83.48 cents per lb. Traders awaited Thursday's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping that could boost Chinese purchases of US supplies.
Sept 21 (Reuters) — ICE cotton futures recovered on Monday from the previous session's seven-week low, tracking gains in broader agricultural markets, while traders awaited Thursday's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping that could boost Chinese purchases of US supplies. m. ET after falling to its lowest since August 3 on Friday. "The market is grossly oversold...
We'll see what trade deal might come out of that (the Trump-Xi meeting)," said Keith Brown, principal cotton broker at Keith Brown and Co in Georgia. Chicago soybeans and corn rose as traders awaited the meeting of the two presidents, while wheat gained after drone attacks by Ukraine and Russia reduced hopes for a de-escalation in their war that has virtually stopped their Black Sea exports. S. farm products annually through 2028.
Meanwhile, "I don't see any strong demand (for cotton) right now. Fuel (prices are) very high in the world, so that's taking up discretionary spending from apparel over to buying fuel for your car," Brown said. Reflecting poor demand, the US Department of Agriculture's last week's weekly export sales report for the week ended September 10 showed net sales of 71,200 running bales (RB) of upland cotton for the current marketing year, compared with 73,900 RB reported for the week ended September 3. com;)