banner-slide-3

News Details

Home / News / DTN Cotton Close

DTN Cotton Close

Cotton Lower, Dollar Higher Friday

Jun 23, 2023

The cotton market was sharply lower Friday amid collapsing Chicago grains, and a strong U.S. dollar.

The cotton market was sharply lower Friday amid collapsing Chicago grains, and a strong U.S. dollar. Of late, the global economic sentiment has been revolving around rising interest rates. Increasing the "cost of money" will slow or even shutter many parts of the economy, thus crimping demand.

Friday afternoon, the CFTC will issue its weekly, but always data-delayed, Commitment of Traders report. Last week, the managed-money funds were virtually neutral, as they carried a net long position of some 557 contracts.

Friday's updated weekly U.S. Drought Monitor showed little change in the growing conditions for West Texas. Last week, some 16% of all U.S. Cotton was under drought, compared to the 28% reading from May 30.

Currently for Texas, the six- to 10- and the eight -to 14-day outlooks both carry much above-normal temperatures and normal to below-normal chances of precipitation.

Spot July will enter its delivery this Monday. Its expiration falls on Friday, July 7. 

Crude oil fell nearly 1%, before staging a small recovery. The surprising UK interest rate hike earlier this week fueled the notion that weaker economic growth will outweigh lower U.S. energy inventories. Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and cloud the oil demand outlook for the rest of the year.

Friday, July settled at 78.06 cents, down 1.23 cents and December 2023 ended at 78.67 cents, down 1.48 cents and March was 78.88 cents, 1.41 cents lower. Estimated volume was 29,857 contracts.

Latest News & Reports

Cleveland on Cotton

No Sugar Coating: Bearish Tones Return to Cotton Market Apr 14, 2024 Thoughts that cotton ha...

Read More...

PCCA Cotton Market Weekly

APRIL 12, 2024 Cotton futures continued to fall during a busy, data-driven week. • May fut...

Read More...

USDA-WASDE

Apr-2024 COTTON: The U.S. 2023/24 cotton supply and demand projections are unchanged this month, ...

Read More...

U.S. EXPORT SALES

For Week Ending 04-Apr-2024 Net Upland Sales 2023-24 Net sales of Upland totaling 81,500 RB ...

Read More...

PCCA Cotton Market Weekly

APRIL 5, 2024 *May cotton futures finished below 90 cents per pound after falling under pressure ...

Read More...