Cotton Stumbles Higher Friday
Jun 16, 2023
On moderate volume, the cotton market ended this week on a positive note.
On moderate volume, the cotton market ended this week on a positive note. The market is assessing its many direct and indirect fundamentals such as poor exports, wild weather, a rising Dow Jones, and a two-sided U.S. dollar.
Friday afternoon, the CFTC will update its weekly commitment of traders report. Last week, the managed-money funds net-long some 4,000 contracts.
The six- to 10-day forecast calls for above-normal temperatures for Texas. However, the El Nino weather pattern could bring even more rain to Texas, as well as the Delta and Southeast.
Crude oil was steady to higher Friday as the general demand outlook tightened by increased Chinese usage, as well as recent supply cuts by OPEC. China's refinery demand was higher during May to its second-highest total on record.
July cotton will enter its delivery on June 26. The contract will expire on July 7.
Monday is a federal holiday, thus all banks and markets are closed. Cotton trading reopens Monday night.
Friday, July settled at 81.46 cents, up 0.82 cent and December 2023 ended at 80.10 cents, 0.50 cent higher. Estimated volume was 29,209 contracts.