Cotton Defies Outsides, Trades Up Tuesday
May 16, 2023
On a day when most markets were categorically lower, the cotton market broke rank and remained aloft.
On a day when most markets were categorically lower, the cotton market broke rank and remained aloft. Fears concerning the Washington debt talks, higher interest rates and poor retail sales, sent many markets nervousness lower.
The weather forecast for the one- to five-day map calls for rain across the Southwest. The six- to 10- and the eight- to 14-day forecasts continue to reflect above average chances of rainfall.
Tuesday's retail sales numbers were deemed neutral to bearish. April core retail sales (month over month) were reported at 0.4% versus 0.4% expectations. The year over year data was 1.60% versus the 4.2% expectation.
Traders are anxiously awaiting news on the debt ceiling process. On Monday, Biden maintained a more optimistic view of the ongoing negotiations over the weekend, but House Speaker Kevin McCarthy indicated that significant obstacles remain. Biden has so far maintained that raising the debt ceiling is non-negotiable, however, McCarthy has pushed that the debt ceiling be tied to spending cuts.
This Thursday, USDA will issue its weekly export sales. Last week saw decent sales for China, but less total shipments.
Tuesday, July settled at 83.38 cents, up 1.01 cents and December 2023 ended at 82.50 cents, 0.72 cent higher. Estimated volume was 36,328 contracts.