Taking its bearish cue from imploding outside markets, plus a potential for West Texas next week, the cotton market dropped some 2.00 cents. At one point, Chicago corn was limit-down with soybeans off nearly 70 cents. Such peripheral negativity was too hard for cotton to ignore. Additionally, Thursday’s export-sales report was essentially non-supportive to the market.
The market also continues to monitor the COVID-19 situation in India. There is continued talk of shuttering the entire nation right at planting. India now leads the world in total daily COVID-19 infections and deaths.
The U.S. dollar was higher Thursday. Given the unexpected hike in inflation numbers via Wednesday’s CPI data, some traders anticipate the Federal Reserve will soon be forced to raise interest rates ahead of its 2022 schedule.
Heading into Friday, spot July cotton is down on the week some 4.68 cents, off 3.10 cents on the month, but is up 5.81 cents for the year.
Thursday, July cotton closed at 84.98 cents, down 3.25 cents, December settled at 83.30 cents, down 2.37 cents and March 2022 ended at 83.04 cents, off 2.21 cents; Estimated volume was 39,463 contracts.