ICE cotton futures were largely unchanged on Tuesday, as the market awaited more information from the plantings acreage report and the meeting between Washington and Beijing at the Group of 20 Summit due later this week. The most-active cotton contract on ICE Futures US, the third-month December contract, settled up 0.03 cent, or 0.05%, at 65.72 cents per lb. It traded within a range of 65.68 and 66.21 cents a lb.
"There is no trend. The market has been consolidating between 64.5 and 68.5 cents," said Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group. "We are just treading water until the acreage reports and the US-China meeting at the G20 summit. I don't expect we are going to have a major direction until then."
The US Department of Agriculture's (USDA) annual acreage report is scheduled for release on Friday. The goal of a meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Japan from June 28-29 will be to restart trade talks, a senior administration official said on Tuesday. Cotton prices have suffered since the inception of the trade conflict between the two biggest economies in the world.
Meanwhile, Monday's crop progress report from the USDA showed cotton crop was 96% planted in the week to June 23, more than the 89% reported for the previous week, however less that the five-year average of 98%. "In the crop progress report, the condition data does not accurately depict the lateness of this season's crop and at some point in time it will. There's a lot of uncertainty and we are going to see some evening up," Rose added.
Total futures market volume fell by 2,744 to 14,552 lots. Data showed total open interest fell 592 to 175,217 contracts in the previous session. Certificated cotton stocks deliverable as of June 24 totalled 101,719 480-lb bales, up from 99,153 in the previous session.
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