The cotton market was able to hold onto its triple-digit gains despite weakness in the Chicago grains and some tenuous strength in the U.S. dollar. Traders are indicating the damage to the Delta crop from Tropical Storm Claudette is still being assessed.
In addition, traders are turning their attention to the planted acres report out next week. It was already expected cotton’s acres would be reduced, but given the varying weather adversities, which has plagued much of the Cotton Belt, total acres may be all the more restricted.
Thursday, USDA will issue its weekly export sales. Last week combined crop year sales totaled some 214,200 bales, with Pakistan as top buyer. Weekly shipments topped 303,800 bales, which was up 18% week over week.
July cotton will enter its delivery period at the close of business Wednesday.
The technical trend of the market appears to be reasserting itself. The current market is well above the widely followed 50-day, and 100-day moving averages. In addition, Monday’s “traders report” issued by CFTC showed the managed-money funds had increased their net long position. As of Wednesday’s close, new-crop December stands 1.25 cents beneath its highest contract settlement and 2.32 cents from posting a new contract price high.
For Wednesday, July closed at 86.46 cents, up 2.24 cents, December settled 86.94 cents, up 1.30 cents and March 2022 ended at 86.43 cents, 0.98 cent higher; estimated volume was 19,186 contracts.