The cotton market is moderately higher Wednesday as traders await the 2 p.m. EST announcement from the Federal Reserve regarding interest rates. The Fed has been declaring for some time its need to increase rates as a means of combating inflation. Additionally, traders are mindful of the Russia/Ukraine situation.
Thursday at 8:30 a.m. EST, USDA will issue its weekly export sales report. While week-over-week sales were off the previous period, they remain above the four-week pace. However, last week saw strong shipments of 198,000 bales, leaving traders with increasing hopes that the supply-chain crisis is improving.
Overnight and into Wednesday morning, the Dow Jones is rallying after a couple days of wild trading. While investors are wanting to see what the Federal Reserve indicates this afternoon, they were impressed by 5.5% earnings from Microsoft. Additionally, shares of Apple, Amazon, Netflix and Nvidia are all higher, adding to Wednesday’s across-the-board positive tone.
For Wednesday, close-in support for March cotton is 120.20 cents and 119.20 cents, while resistance stands at 122.50 cents and 122.90 cents. The estimated morning volume is 5,682 contracts.
