DTN Cotton Close: Market Up, Buoyed by Exports, Grains

Irrigated cotton field. Photo: Larry Stalcup, AgFax Media

The cotton market ended moderately higher Thursday as USDA issued some very positive export-sales data. However, several favorable weather outlooks seem to dampen bullish enthusiasm, but a strong resurgence in the Chicago gains helped cotton carry the day as well. Additionally, the resumption of trade talks between China and the U.S. was seen as a potential positive, even though the initial Chinese rhetoric was harsh. China wants a complete lifting of all of former President Trump’s tariffs.

Friday, the CFTC will issue its weekly Commitment of Traders data. Although the data is as of this past Tuesday, a time when the market was two-sided, traders are hoping to see no more net liquidation from the managed-money funds.

The weekend weather for South Georgia calls for scanty rain chances and even fewer opportunities in the coming 10 days. To that end, the planting of dryland cotton in the area has come to halt.

Heading into Friday, which is month’s end, spot July cotton is down 0.18 cent for the week and down 5.47 cents for the month. However, it is positive on the year by some 3.44 cents.

Traders are preparing for a long three-day break. The market will be closed on Monday in observance of Memorial Day. The ICE futures will resume normal trading on Monday night.

Thursday, July cotton closed at 82.61 cents, up 0.17 cent, December settled 83.46 cents, plus 0.23 cent and March 2022 ended at 83.41 cents, 0.25 cent higher; estimated volume was 24,410 contracts.

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