November 13, 2019
NEW YORK: (Reuters): ICE cotton futures eked out gains on Tuesday as investors awaited a speech by US President Donald Trump for clarity on a US-China trade deal. Cotton contracts for December rose 0.15 cent, or 0.23%, to 64.44 cents per lb by 12:05 p.m. EST (1705 GMT), trading within a range of 64.01 to 64.67 cents per lb.
“We have President Trump to speak on details about phase one agreement, the market seems to be cautiously optimistic, expecting something to happen,” said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago. “Market need to close over 66 cents in the December contact, until then prices are expected to be range bound between 64 cents - 66 cents.”
Trump is scheduled to discuss the country’s trade policy at the Economic Club of New York later on Tuesday where investors will look for signs of concrete progress in a trade truce between Washington and Beijing. The 16-month long tariff war between the world’s biggest economics has weighed on investors’ sentiment towards riskier assets, including cotton, which has slipped more than 10% so far this year.
Remarks by Trump over the weekend, that there had been incorrect reporting about US willingness to lift tariffs on China, sent cotton market lower on Monday. Investors are also keeping a watch on continuing unrest in Hong Kong, with a senior officer saying the unrest had brought the city to “the brink of total breakdown.”
Total futures market volume fell by 38,912 to 39,832 lots. Data showed total open interest gained 693 to 239,761 contracts in the previous session. Certificated cotton stocks deliverable as of Nov. 11 totaled 47,789 480-lb bales, up from 46,985 in the previous session.—Reuters
(Source: Business Recorder)