Keith Brown DTN Contributing Cotton Analyst    

The cotton market closed limit down as it was caught up in the general commodities meltdown. Traders across many markets liquidated positions fearing recession.    

Tuesday afternoon USDA will issue its crop rating data. It is thought the cotton crop has further deteriorated.    

Weather-wise, the six- to 10-day and eight- to 14-day forecasts call for much above-normal temperatures across the Cotton Belt. The Delta and Southeast are expected to see normal to above-normal rainfall, but West Texas could experience normal to below-normal precipitation.    

The U.S. Dollar Index was sharply higher Tuesday amid the sharp sell-off in equities and energies. Those declines have triggered large fund selling to satisfy margin calls. In addition, there has been a noticeable drop in consumer confidence, a sure sign that a recession is at hand.    

For Tuesday, July cotton settled at 99.68 cents, down 4.00 cents, December closed at 93.48 cents, down 4.00 cents and March 2023 finished at 89.37 cents, 4.00 cents lower; estimated volume was 33,900 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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