Keith Brown DTN Contributing Cotton Analyst    

The cotton market was lower Tuesday as the month of February concluded. There was squaring and balancing by certain managed-money funds, along with a measure of producer price fixation. The sharp weakness in grains, based on superior South American crops, may have played a bearish role.    

As traders move into the month of March, they will focus on 2023 acres. Already the NCC published its membership survey showing a 17% reduction. This was followed by an even deeper decline of 21% from USDA's Ag Forum. The official Prospective Plantings will be issued on March 3t. That will be the benchmark number for any additions or subtractions to the crop.    

The Dow Jones Industrial Average fell Tuesday as traders wrapped up a tough month for the stock market. Despite a solid start to the year, the major indexes are on pace for their second negative month in the last three. The Dow is down 4% for the month and is down year to date. The S&P 500 and Nasdaq Composite have lost about 2.5% and 1% in February, respectively, but are still higher year to date. The machinations of the Dow help to form a psychological outlook for industrial commodities such as cotton.    

Tuesday, May 2023 finished at 84.03 cents, down 0.77 cent, July settled at 84.46 cent, off 0.77 cent and December 2023, ended at 83.83 cents, down 0.43 cent; estimated volume was 22,967 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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