1.   Cotton prices rose, rebounding from a nine-month low yesterday, amid speculation the lower prices will boost demand from exporters and domestic mills.

2.   Domestic mills disagree, saying they can increase capacity if the tariffs take effect.

3.   Even with a larger cotton crop, cotton prices surged because the USDA also projected stronger demand, both from domestic mills and foreign markets.

4.   Traders expect to see falling cotton use at domestic mills and possibly high cancellations of sales made to China for delivery later this summer.

5.   Prices sagged last month on the belief that domestic mills had locked in enough cotton to last until October or November, when the new crop comes in.

6.   US domestic mills were importing the semifinished steel because they were worried about the impending impact of the tariffs, it argued.