Cotton Falls Toward Three-Month Low
Cotton futures plunged below 80 cents per pound, approaching their lowest level in three months, weighed down by the expected increase in new-crop availability and subdued export demand. Weekly crop progress data confirmed that harvest progress and boll-opening rates continue to run ahead of historical averages, accelerating the arrival of fresh supply into marketing channels and putting further pressure on prices. Meanwhile, demand has offered little support to offset seasonal harvest pressures, as international trade flows remain competitive. Soft import demand from key Asian consuming markets, compounded by robust export competition from Brazilian producers, continues to weigh on the outlook for US cotton shipments. Trade sentiment was further dampened after US-China trade talks omitted cotton from the tariff-relief schedules.
Cotton futures plunged below 80 cents per pound, approaching their lowest level in three months, weighed down by the expected increase in new-crop availability and subdued export demand. Weekly crop progress data confirmed that harvest progress and boll-opening rates continue to run ahead of historical averages, accelerating the arrival of fresh supply into marketing channels and putting further pressure on prices. Meanwhile, demand has offered little support to offset seasonal harvest pressures, as international trade flows remain competitive.
Soft import demand from key Asian consuming markets, compounded by robust export competition from Brazilian producers, continues to weigh on the outlook for US cotton shipments. Trade sentiment was further dampened after US-China trade talks omitted cotton from the tariff-relief schedules.