Cotton finished mixed as the market sloughed off weak sales, choosing to focus on next Tuesday’s monthly supply/demand report. Last month, USDA cut the U.S. crop 900,000 bales to 20.65 million bales. Expectations from some analysts suggest at least 500,000 bales ought to be anticipated. Much of the crop’s additional loss will sadly come out of Texas.
Friday is the final trading day for December cotton. There were only two deliveries Thursday, bringing the number of notices issued in this period to 812 contracts. For a bit of price perspective, the December 2019 contract originated in January of 2017 at 70.86 cents. Then, over time, it posted its highest high in June of 2018 at 84.50 cents, its low was made on August 26 at 56.59 cents versus Thursday’s settlement at 63.51 cents. Coming into Thursday morning spot December’s open interest was 194 contracts.
The U.S. dollar was lower Thursday as the impeachment proceedings continue. The strength of any currency is based upon traders’ confidence in any given currency. Thus, when the President of the United States is threatened with possible removal, it will have a negative impact on the Dollar. Potentially, a weaker dollar could translate into more origin buyers snapping up U.S. Cotton
For Thursday, December cotton closed at 63.51 cents, up 0.34 cent, March cotton ended at 64.51 cents, down 0.19 cent and December 2020 cotton finished at 67.11 cents, up 0.05 cent. Thursday’s estimated volume was 22,680 contracts. As the week nearly ends March cotton is down 85 points week-on-week.