MUMBAI (Commoditiescontrol) - Throughout the week US cotton futures traded in a 154-point range from 72.75 to 74.29cents/lb.
Last week, first two trading days were largely influenced by news of cancellation of US-China preparatory trade talks and then denial of the same. Then macroeconomic factors such as slowdown in European economy pulled the prices down.
Furthermore, the news that Federal Reserve officially indicated it was no longer on a definite path to hike interest rates, resulted in a fall of dollar and rise in commodity prices. Some short covering and fresh long built up were also seen on Friday due to which the benchmark March contact closed up by 99 points at 74.13 cents/lb and managed to record gain of 24 points for the week.
On the US government shutdown front, a compromise of sorts has been reached between the president and the democrats to reopen the government. But this reprive is only for three weeks. This means atleast export data, CFTC report and February WASDE reports will be published during this period.
Now market focous will be on USDA export sales to be released on Thursday. As per market sources, export commitments are expected to gain substantially and there could be a pleasant surprise in export sales.
Other factor that could drive the the market will be US-China trade talk which will commence on Wednesday. Overall, market further course of action action will depend on export sales data and outcome of US-china trade negotiations.
(By Commoditiescontrol Bureau)
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