"Prices are up on the news that China as a part of the trade deal has committed to buy $30 billion of US agriculture goods, and there are all sort of hopes that the cotton will be included," said Jack Scoville, vice president at Price Futures Group in Chicago. "This (latest news on trade talks) is potentially a game changer, the mere fact that it could happen is enough to create significant speculative buying," Scoville said.
The United States and China have started to outline commitments in principle on the stickiest issues in their trade dispute, marking the most significant progress yet toward ending a seven-month trade war. This comes after a report that China is expected to propose spending $30 billion more on US agricultural imports.
Meanwhile, the US Department of Agriculture projected 2019 US all-cotton plantings at 14.3 million acres, which analysts said was lower than what the market expected. Friday is the first notice day for the March contract. Total futures market volume rose by 13,818 to 47,252 lots. Data showed total open interest fell 6,618 to 223,795 contracts in the previous session. Certificated cotton stocks deliverable as of Feb. 20 totalled 127,973 480-lb bales, down from 129,104 in the previous session.