Cotton Awaits News, Any News
May 31, 2023
The cotton market was fretfully lower Wednesday, along with so many other markets.
The cotton market was fretfully lower Wednesday, along with so many other markets. Traders are awaiting the outcome of the debt ceiling vote, which is scheduled for Wednesday in Washington. The bill faces tough opposition from both extremes of the political parties. A "no vote" could potentially send the financial and commodities markets sharply lower, while possibly surging the U.S. dollar higher.
USDA's weekly exports-sales are delayed until Friday morning, due to the observance of Memorial Day holiday on Monday. Last week's sales were 131,000 bales, off 1%, while shipments were 268,000, down 19%.
Crude oil fell Wednesday amid a strong U.S. dollar and weak Chinese economic data. China's manufacturing activity contracted faster than expected in May, with its PMI down to 48.8 from 49.2 in April. The outcome lagged a forecast of 49.4%. Also, additional selling pressure came as the U.S. dollar traded its highest in two months. This Friday's jobs data could further strengthen the Greenback, as strong payroll numbers should encourage the Federal Reserve to hike rates.
The one- to five-day forecast calls for heavy rains across the Texas Panhandle. The six- to 10- and the eight- to 14-day outlooks hold above-normal chances for precipitation. However, the more extended 90-day outlook shows above-normal temperatures, with normal to below-normal rains.
Wednesday, July settled at 83.48 cents, down 0.51 cent and December 2023 ended at 79.47 cents, 0.74 cent lower. Estimated volume was 38,863 contracts.