Cotton Drags Lower Wednesday
Jun 21, 2023
The cotton market was moderately lower Wednesday, with spot July leading the downward change.
The cotton market was moderately lower Wednesday, with spot July leading the downward change. The market ignored rising energy and grain prices, plus a falling U.S. dollar to remain in a bearish funk.
Weekly export sales have been delayed until Friday, due to the observance of the Juneteenth holiday. Two weeks ago saw a marketing-yea -high sales number, but last week's report sales flashed below 100,000 bales.
Fed Chair Powell is testifying before the House and Senate banking committees to explain why two additional rate hikes may be needed this year. At its June meeting, the central bank paused raising rates after 10 consecutive increases but left the door open for two more hikes.
The immediate forecast calls for above-normal temperatures, with virtually no rain for West Texas. The six- to 10-day outlook also carries above-normal temperatures, with below-normal precipitation for that area. However, the eight- to 10-day holds even higher temperatures. The southeast is expected to be inundated with rain for the next several days, which may prove negative to the crop.
July cotton will enter its delivery on June 26, meaning that all participants must exit the contract by this Friday, or face the perils of delivery. The contract will expire on July 7.
Wednesday, July settled at 79.31 cents, down 1.35 cents, and December 2023 ended at 80.52 cents, down 0.18 cent and March was at 80.70 cents, 0.09 cent lower. Estimated volume was 31,879 contracts.