Cotton Up Thursday, Weekend Squaring
The cotton market was sharply higher Thursday as holiday squaring brought in the buyers. Funds, specs and bargain hunters were demonstratively on the buy side Thursday; it also helped that the U.S. dollar was lower and the Dow Jones was higher. Lastly, Thursday morning export sales were deemed respectable. Although the numbers were below those of last week, both China and Vietnam were the headline buyers. With that, cumulative sales for 2022-23 have reached 102% versus a five-year average for that week of 99%.
Texas soil conditions are very dry, with no rain in its five-day forecast. However, something of a change in the weather pattern now has both the six- to 10- and the eight- to 14-day models with above-normal precipitation in their respective forecasts.
On Monday of next week, USDA will continue its crop progress report, tracking the planting of the 2023 crop. Last week, the crop was pegged at 4% seeded versus the five-year average of 5% complete. Then, on Tuesday, USDA will update its supply-demand number via the April WASDE.
Next week will also bring fresh CPI and PPI inflation data. No doubt these reports will play a pivotal role at the Federal Reserve's May meeting.
Thursday, May 2023 finished at 83.20 cents, up 2.13 cents July settled at 83.47 cents, up 2.18 cents and December 2023 ended at 83.24 cents, 1.62 cents higher. Estimated volume was 59,969 contracts