Cotton Lower Friday Morning on Trade Threats

Cotton futures are trading 52 to 82 points lower this morning. They saw 95 to 161 point losses in the front months on Thursday, and set new life of contract lows overnight. President Trump announced he planned to add a 10% tariff on the remaining $300 billion of Chinese goods. A good chunk of that is consumer technology items made by US companies in China. The Export Sales report from USDA showed just 10,186 RB of old crop upland cotton sold in the week of July 25. The top buyer was Vietnam at 8,000 RB, with 5,425 RB in cancellations for China as we flip to a new MY today. New crop cotton sales were shown at a MY high for the week of 7/25 at 364,802 RB, with 48,336 RB to China and 214,000 RB sold to Vietnam. The Cotlook A index for July 31 was down 75 points from the previous day at 74.85 cents/lb. The new weekly AWP is 56.96 cents/lb, down 89 points from the week prior.

--provided by Brugler Marketing & Management

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