The cotton market ended higher Monday amid concerns of low acres and adverse weather. To that end, the market is anticipating Monday afternoon’s weekly crop condition report. Last week Texas was rated 36% very poor/poor. In addition, the market will also be focusing on any weather updates. Current forecasts have Texas with below normal rainfall and above normal temperatures.
The market is also waiting for this week’s exports-sales data. There has been evidence of massive sales of soybean and corn, this has some traders assuming China will stock up on cotton as well. Currently, old crop sales are running way ahead of USDA’s projection.
Wednesday will see the expiration of July cotton. While deliveries no longer represent a threat, how July finally settles may influence technical traders. That is if July closed below December, then the new crop will may feel compelled to trade down to where July finished.
December cotton settled at 63.14 cents, up 0.19 cent, March ended at 63.88 cents, up 0.21 cent and December 2021 finished at 62.16 cents, up 0.19 cent. Estimated volume was 19,941 contracts.