Cotton Lower on Chinese Tariff Talks

Cotton futures closed trading lower by 63 to 80 points lower day. China announced addition tariffs on several US ag goods this morning in retaliation to the US tariff implementation on $300 billion in Chinses goods in September and December. Of those cotton was included with 5% in tariffs added to US goods on Sept 1. President Trump responded by adding 5% of hit own to the tariffs on a total of $550 billion in Chinese goods starting on Sept 1 ($300 billion) and Oct 1 ($250 billion). Commitment of Traders data showed specs in cotton futures and options trimming 3,443 contracts from their net short potion to 41,199 contracts. Export commitments of US upland cotton are now 49% of the USDA export projection, with the average at 43% for this time. The Cotlook A Index was higher 70 points on August 22 at 71.20 cents/lb. The weekly AWP is now 52.57 cents/lb, good through next Thursday.

OCT 19 Cotton closed at 58.07, down 80 points,

DEC 19 Cotton closed at 58.18, down 76 points

MAR 20 Cotton closed at 59.07, down 79 points

MAY 20 Cotton closed at 60.13, down 63 points

--- provided by Brugler Marketing & Management

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