June 6, 2019 / 6:44 PM / 6 months ago

Cotton falls on weak export sales data, tariff woes

    June 6 (Reuters) - Cotton futures slipped for a third
straight session on Thursday on weaker export data, while fresh
threats from Washington to impose additional tariffs on more
Chinese goods ruffled investors.
    * Cotton contracts for July        settled down 0.15 cent,
or
0.2%, at 68.59 cents per lb.
    * It traded within a range of 67.48 and 68.72 cents a lb.
    * The U.S. Department of Agriculture (USDA) reported net
sales of
182,300 running bales (RB) for marketing year 2018/19 were down
37% from the previous week, while exports of 308,600 RB were
down 25%.             
    * "The export data was negative ... until we see significant
demand emerge, I think this market is going to be subject to
lower prices," said Jobe Moss, a broker with MCM Inc in Lubbock,
Texas.
    * To add salt to wounds, U.S. President Donald Trump said on
Thursday he would decide whether to carry out his threat to levy
tariffs on Chinese goods worth at least $300
billion.            
    * The long-drawn trade dispute between the world's two
largest
economies has upset markets since its conception nearly a year
ago.
    * The United States is one of the world's biggest exporters
of
cotton, while China is the largest consumer.
    * "Cotton prices could rise to 69-70 cents, or at the most
72.33
cents for the July contract," Moss added. "Markets don’t rally
on uncertainty."
    * Total futures market volume rose by 1,405 to 34,584 lots.
Data
showed total open interest gained 753 to 209,067 contracts in
the previous session.
    * Certificated cotton stocks CERT-COT-STX deliverable as
of June
5 totaled 81,462 480-lb bales, up from 81,218 in the previous
session.


 (Reporting by Asha Sistla in Bengaluru; Editing by Lisa
Shumaker)
  
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