Cotton finished higher Thursday as the market saw the U.S. dollar tumble and enhanced weekly export sales. Supposedly President-elect Biden will present his “cure for what ails” the economy tonight in a national address. His plan is expected to include the spending of untold trillions of dollars. That action alone will dilute, and thus, devalue the greenback.
Weekly export sales showed marked improvement. Thursday’s business was the strongest to date in this young season. China was the standout buyer, followed by Pakistan. Of course, this is a direct correlation between a weak dollar and exports of U.S. agricultural products, so traders are anticipating continued robust sales.
Heading into Friday, spot March is 1.38 cents up on the week and 3.03 cents higher on the month and the year, respectively.
Thursday, March cotton closed at 81.15 cents, up 0.23 cent, July settled at 82.75 cents, up 0.22 cent and December ended at 76.80 cents, unchanged; estimated volume was 25,631 contracts.