Keith Brown DTN Contributing Cotton Analyst    

Despite a respectable export-sales report, the cotton market resumed its downside decline Thursday. At the heart of the break is a stronger U.S. dollar and rising fear of recession. Earlier in the day, the monthly PPI data came out showing higher inflationary tendencies. Thus, the Federal Reserve is at liberty to continue increasing rates. With that, a lot of technical selling banged the market as speculators liquidated ahead of the three-day weekend. Overall risk sentiment for many markets remains weak at best.    

Traders fear that for the intermediate future, Turkey may slow and possibly even cancel sales due to the 7.8 Richter Scale earthquake that hit the nation a week ago. Economically, traders also see the possibility of continued softening demand in the months ahead. Consumer debt is increasing, and discretionary income is fading.    

March cotton enters its delivery on Wednesday of next week. There were scanty deliveries made on the December Contract last time, but that was then.    

Thursday, March 2023 finished at 81.25 cents, minus 1.30 cents, July settled at 82.76 cents, down 0.84 cent and December 2023, ended at 82.47 cents, 0.53 cent lower; estimated volume was 49,610 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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