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DTN Closing Cotton 10/04 13:42
Cotton Gets a Reprieve
After plunging over 10 cents during the month of September, the cotton
market finally experienced a sharp up session Tuesday.
Keith Brown
DTN Contributing Cotton Analyst
After plunging over 10 cents during the month of September, the cotton
market finally experienced a sharp up session Tuesday. In fact, December Cotton
closed at limit up. Its recovery was also encouraged by a strong Dow Jones and
a collapsing U.S. Dollar Index. All of that activity is based on a mindset that
the world's central banks may slow their plans to hike interest rates.
Weather-wise, the six- to 10- day and the eight- to 14-day forecast call for
above-normal precipitation in west Texas and below-normal in the Southeast. In
speaking to a couple of Texas growers they lamented that, despite a smaller
crop, the state's harvesting efforts will be a long and drawn out process.
This Thursday, USDA will issue its weekly export-sales report. Last week's
numbers were terrible, showing only about 70,000 bales sold for both combined
crop years. China is on holiday this week and will likely not appear as a buyer
any time soon.
This Friday, the Labor Department will report its monthly jobs data.
Expectations call for some 250,000 jobs created in September. A number higher
or lower, may or may not, alter the Federal Reserve's plan to hike interest
rates. Tuesday's August jobs openings showed contraction in the ratio of
openings versus job takers. At one time it was 2 to 1, and now it's 1.67 to 1.
For Tuesday, December closed at 88.20 cents, up 4.00 cents, March 2023
finished at 86.19 cents, up 4.00 cents and July 2023 settled at 83.02 cents,
4.00 cents higher; estimated volume was 33,950 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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