DTN Closing Cotton: Cotton Stays Down Tuesday
May 09, 2023
The cotton market ended Tuesday with triple-digit losses, a victim of bearish rain forecasts and weak Chinese economic data.
The cotton market ended Tuesday with triple-digit losses, a victim of bearish rain forecasts and weak Chinese economic data. In addition, the U.S. dollar was higher, anticipating a hefty CPI number Wednesday.
In an economic report, China reported that its exports were higher, but that its imports were greatly lagging. The numbers suggest an uneven recovery from COVID. Whether its situation is deliberate or logistical, no one can say.
There are a host of potentially market-moving reports this week, including Wednesday's CPI Report, Thursday's PPI and weekly export sales, and then Friday's May WASDE from USDA.
Current weather forecasts have rain for West Texas in their line-up. The one- to five-day shows up to 2 or so inches of wetness for some Lone Star locations. The extended six- to 10- and eight- to 14-day outlooks both carry above-normal precipitation opportunities for the Southwest. The most recent U.S. Drought Monitor underscores the dryness of the Texas/Oklahoma situation, with areas of severe to extreme drought ratings.
Wednesday, July settled at 80.99 cents, down 2.31 cents and December ended at 81.01 cents, 1.99 cents lower. Estimated volume was 38,475 contracts.