The cotton market traded higher, then lower, then higher again in what can only be described as a “sleepy session.” The market was in slow-motion as it awaits Thursday export-sales report.
Additionally, even though the Chicago grains finished higher, they were not as emotional as they had been running. For the sales number, traders would like to see an amount exceeding 100,000 bales. That might allow the market to regain some bullish momentum.
May cotton expires Thursday, meaning that come Friday morning, July cotton will be the sole remaining contract of the 2020-21 Season.
Weather-wise, West Texas’s best chances for rain will be this Friday into Saturday. Forecasters suggest scattered thunderstorms will widely develop. Still, it is thought that the resulting rainfall will be too light for any serious impact on the region. Another chance for rain will evolve during midweek next week. Bottom line, dryness remains a top production concern, and possibly a bullish driver for the market into late May.
Wednesday, July cotton closed at 87.33 cents, up 0.16 cent, December settled at 85.40 cents, up 0.34 cent and March 2022 ended at 84.68 cents, 0.30 cent higher; estimated volume was 17,482 contracts.