Cotton Continues Downward Trek Tuesday
Jun 27, 2023
The cotton market posted new lows for the year Tuesday, despite the appearance of adverse weather.
The cotton market posted new lows for the year Tuesday, despite the appearance of adverse weather. Traders are awaiting Thursday's export-sales, and Friday's Planted Acres report from USDA.
West Texas is expecting to see virtually no rain over the next five days. The extended six- to 10-day outlook shows near-normal temperatures and above-normal rainfall.
Newswires are reporting of a developing crop situation in India regarding a pink bollworm infestation. Last year, the pest did measurable damage to its cotton production.
Certain technical momentum indicators have fallen to their lowest levels since November 2022. Such negativity encourages traders to sell rallies.
To reiterate, this Friday USDA will publish its long-awaited Planted Acres report for 2023. The current average trade guess stands at 11.12 million acres. The range of expectations runs from 10.5 to 12.0 million acres. The forecast in March was 11.256 million, and last year's plantings totaled 13.763 million.
Spot July remains in its notice period. Tuesday there were zero deliveries placed against the contract. July cotton expires July 7.
Tuesday, July cotton settled at 77.64 cents, up 0.57 cent and December ended at 77.06 cents, down 0.80 cent and March was 77.30 cents, 0.75 cent lower. Estimated volume was 32,228 contracts.