ICE cotton futures fell for the third straight session to a one week low on Monday as lack of clear signs over a trade deal between the United States and China kept investors on edge. Cotton contract for March were down 0.54 cent, or 0.83%, to 64.82 cents per lb by 02:15 p.m. ET (1915 GMT), a level last seen on Nov. 25.
“We've been very very sideways & I think a lot of what the market is focusing on news wise is this trade deal," said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago. China on Monday imposed sanctions upon several US non-government organizations in retaliation for US legislation passed previous week supporting anti-government protesters in Hong Kong.
“The prospect for a US – China trade accord to be agreed to and officially signed this year is looking slim, especially with China's recent reaction to US public philosophical support of Hong Kong protesters," said Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group in a note.
Meanwhile, US President Donald Trump sent shock waves through Brazil and Argentina, announcing he would restore tariffs on US steel and aluminum imports from the two countries in apparent retaliation for currency weakness he said was hurting US farmers.
The move sent US stocks lower on Monday. Total futures market volume rose by 13,644 to 27,848 lots. Data showed total open interest gained 834 to 199,846 contracts in the previous session. Certificated cotton stocks deliverable as of Nov. 29 totaled 83,666 480-lb bales, up from 78,124 in the previous session. – Reuters (Source: Business Recorder)