G20 meeting offers short-lived pick-up for cotton
11/12/2018
Observers of the cotton sector have said forward purchases in the build-up to the meeting were “sparse” because mill buyers were waiting for clarity on the future trade relationship between the world’s two largest economies.
In the event, the market reaction was fairly muted; an initial upturn was registered in New York, prompted by positive indications from the two presidents that no further escalation of the tariff dispute will be implemented in the next 90 days. That period has been allocated for fresh negotiations.
Specialist industry publication Cotlook said in the days that followed: “To date, no tariffs have been lifted or eased, nor has evidence emerged as yet of any additional Chinese purchasing of US agricultural products. The initial fillip to cotton prices has thus not been maintained.”
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