Cotton Cautiously Edges Higher Monday
Jun 05, 2023
Facing a mix of a weaker U.S. dollar and positive crude oil, the cotton market ended slightly up Monday.
Facing a mix of a weaker U.S. dollar and positive crude oil, the cotton market ended slightly up Monday. However, there will be potentially price-moving reports in the form of Monday's planting progress, Thursday's export sales and Friday's supply demand report.
As mentioned, Monday afternoon, USDA will issue the latest crop progress report. Last week, the nation's crop was 60% planted compared to its five-year average of 62%.
There are four days till the expiration of July options. The contract will enter delivery on June 26.
This Friday, USDA will issue its June WASDE. In its May report, the US Crop was forecasted higher, at 15.5 million bales, based on the 11.26 million planted acres of the March Prospective Plantings.
The one- to five-day forecast has rain for West Texas, perhaps near one inch. The six- to 10-day outlook map shows above-normal chances of rain with normal temperatures. However, the extended eight- to 10-day model indicates near normal precipitation, and a warming trend.
Monday, July settled at 84.79 cents, down 1.26 cents and December 2023 ended at 81.42 cents, 0.43 cent lower. Estimated volume was 47,838 contracts.