Cotton Slumbers Sideways Wednesday
April 26, 2023
The cotton market was fractionally lower Wednesday, lacking any fresh news.
The cotton market was fractionally lower Wednesday, lacking any fresh news. In addition, there was no help from the outside markets, such as the grains, the metals, energies and the Dow. Collectively, they were all down. Traders are seeing not only end-of-the-month squaring, but preparations for next week's interest rate increase from the Federal Reserve.
Thursday morning, USDA will issue its latest export-sales data. Last week's numbers were dismal with sales at a low-end 62,000 bales. Weekly shipments were also uninspiring. That poor sales report initiated Cotton's current price decline.
Forecasters are calling a wetter West Texas. Currently, the six- to 10- and the eight- to 14-day outlooks indicate above-normal chances of rainfall. The rain is much needed as that region, as well as parts of the Southeast, remain in drought conditions,
Thursday morning, USDA will issue its latest export-sales data. Last week's numbers were completely bearish with sales at 62,000 bales, coupled with reduced shipments. The report ignited the market's current negative decline.
Cotton's immediate technical trend appears bearish. Moreover, cotton's open interest, reflective of trading participants, is beginning to increase as prices fall. Such behavior is a sign that new short-sellers are wading into the market.
Wednesday, May 2023 finished at 76.51 cents, minus 0.49 cent, July settled at 78.36 cents, down 0.26 cent and December 2023 ended at 79.16 cents, 0.021 cent lower. Estimated volume was 25,369 contracts.