Cotton is trading higher into the midweek session with a triple digit recovery so far this morning. Front month cotton futures extended the drop on Tuesday with another triple digit loss. December ended the day off the lows, but still down by 191 points. The December contract’s chart gap is still open down at 108.59.  The stock market was lower again, with recession fears circulating, and some uncertainty as investors look ahead to the Fed meeting at Jackson Hole and Powell’s Friday speech.Â
The Chinese yuan/renminbi is being allowed to weaken vs. the USD, making imports from China cheaper in USD and US ag exports to China more expensive in yuan terms. Â
The Cotlook A Index (old crop) was back up by 325 points to 134.25 cents. USDA’s AWP for cotton is 101.90 cents/lb through Thursday.Â
Oct 22 Cotton  closed at 116.26, down 163 points, currently up 174 points
Dec 22 Cotton  closed at 112.23, down 191 points, currently up 160 points
Mar 23 Cotton  closed at 109.07, down 217 points, currently up 133 points
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