Keith Brown DTN Contributing Cotton Analyst    

The cotton market was sharply lower Tuesday amid fears of wobbly banks and higher interest rates. Those two same concerns caused widespread selling in the many surrounding markets, The Dow was off some 500-plus points, while the energies, the grains and the meats were all demonstratively bearish.    

As mentioned, the Federal Reserve meets Tuesday and supposedly will announce another increase to U.S. interest rates Wednesday. It will be its 10th consecutive rate hike. In addition, there are expected rate increases scheduled by the central banks of the UK and the EU.    

Weather-wise, within the one- to five-day forecast, there are calls for up to 1 inch of rain for some Texas locations. The extended forecasts indicate above-normal chances of rainfall.    

On Friday, the Labor Department will release its monthly jobs report. Current estimates are calling for 180,000 new jobs. However, of late, domestic job growth has been faltering.    

There were zero deliveries on the May futures. That contract expires on Monday, May 8.    

Crude oil was sharply lower Tuesday as traders fixated on weak economic data from China and expectations of higher interest rates. It was hoped that by now China's COVID recovery would be in full swing, but its manufacturing activity unexpectedly fell in April.    

Tuesday, May 2023 finished at 78.60 cents, minus 0.94 cent, July settled at 80.37 cents, down 0.94 cent and December 2023 ended at 80.49 cents, 0.72 cent lower. Estimated volume was 24,320 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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