Cotton Market Mixed Following US Tariff Hike

Cotton futures are trading 16 lower to 17 higher this morning after they posted 175 to 208 point losses in most contracts on Thursday. Tariffs on $200 billion of Chinese goods were raised to 25% overnight, but product on the water is excluded. Negotiations with the Chinese in DC continue today. Export sales of old crop upland cotton totaled 235,827 RB in the week of May 2, up 22.15% from last year. New crop sales totaled 56,496 RB. China was the buyer of 16,851 RB for 18/19 and 19,800 RB for 19/20. Weekly shipments were 387,147 RB, with 51,759 RB headed to China. Census revealed March cotton exports were 2.11 million bales, a 42.25% jump from Feb but down 9.37% from last year’s record. The weekly Average World Price (AWP) is now 64.65 cents/lb, down 3.62 cents from last week. The Cotlook A index was down 40 points from the previous day on May 8 at 82.75 cents/lb. --provided by Brugler Marketing & Management

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