Cotton futures traded lower for a third session this week, pausing last week’s recovery from recent contract lows. March cotton traded 11 points lower on Wednesday, with prices falling to 64.46 cents a pound.

Trading volume remains very light following the holiday, as there has been little trading interest at these levels. That is likely due to limited commercial activity, as well as fund traders holding onto their short positions that were established months ago. Technically, the trend remains bearish as prices post lower highs and lower lows on the charts.

U.S. cotton exports are still expected to face challenges due to strong global competition and slowing demand. China’s declining footprint in global trade has been leading to higher ending stocks in the U.S. and Brazil.

Vietnam, one of the United States’ top cotton export destinations, has been showing signs of slowing its cotton imports this season. Shipments for the first three months of the marketing year (August-October) are down 7 percent from the previous year.

The USDA’s Foreign Agricultural Service forecasts Pakistan, another top U.S. export destination, to have cotton imports decline by 8 percent this season due to challenges in the textile industry.

—

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.