The cotton market closed higher Wednesday with December cotton leading the charge. USDA reported unchanged intentions of 12.00 million acres, identical to its January Ag Forum number. However, corn and beans were markedly below their expectations and finished at limit-up. Their action gave rise to the idea cotton’s intended acres were inaccurate, and thus the ICE Futures were higher.
Thursday, USDA will issue its weekly export-sales. This report should reflect the time period when old crop cotton was under the 80-cent mark. Thus, there may have been some stout buying by foreign mills.
With the Intentions now public, traders will center on U.S. and foreign weather. Currently, Texas’ field conditions range from dry to exceptionally droughty. Also, much of the south will see near freezing temperature this Easter Holiday.
Speaking of Easter, the market will be closed Friday in observance of Good Friday.
Wednesday, May cotton closed at 80.88 cents, up 0.24 cent, July settled at 82.17 cents, up 0.42 cent and December ended at 80.10 cents, up 1.18 cents; estimated volume was 48,274 contracts.