On the expectation that the U.S. Congress will pass a coronavirus relief package, the Dow Jones dramatically rallied Tuesday, with the cotton market riding on its coattails. In fact, there was a moment where cotton nearly trade limit-up.
Thursday, USDA will issue weekly exports-sales and it is imperative those numbers are bullish. Over the last few weeks, sales and shipments have reached record levels for the marketing year.
However, there are also some rumors floating about concerning the vitality of some U.S. based yarn producers ability to fulfill certain foreign orders. The fear is the market could see some cancellations in the coming weeks.
U.S. producers are facing tough planting choices or rather little choice at all. We understand there may be a move in the works to heavily increase peanuts acres across the Southeast and most likely additional corn acres in the Delta.
Still, all eyes remain firmly on the path of the stock market, which is a sorry way to analyze the cotton trade.
For Tuesday, May cotton closed at 52.89 cents, up 0.74 cent, July finished at 53.01 cents, up 1.47 cents and December ended at 54.65 cents, up 1.88 cents. Estimated volume was 48,982 contracts.