Cotton Lower on Global Demand Concerns

Cotton futures are 44 to 63 points lower this morning after a surprise rate cut by the RBNZ shook up the currency markets. The dollar is actually a little weaker, but weak global economic growth is an issue. Cotton gained 17 to 29 points in the nearby contracts on Tuesday. Support from a drop in Crop Condition ratings was limited due on trade tensions. NASS reported TX at 50% setting bolls, with GA at 79%, both even with normal progress. Ratings overall dropped by 14 points on the Brugler500 index at 350, with TX a major factor, down 26 points. A Chinese auction of state reserves saw just 2,842 MT of cotton sold on Tuesday, which was 30.58% of the total offered. The Cotlook A was down 250 point on August 5 at 70.90 cents/lb. The weekly AWP is 56.96 cents/lb, good through Thursday.

--provided by Brugler Marketing & Management

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