Keith Brown DTN Contributing Cotton Analyst    

After a promising CPI number rallied most markets, traders realized that "total inflation" remains intact. Thus, several markets, including cotton, failed to stay strong. However, there are other economic reports out this week, such as Thursday's PPI, and Friday's Retail Sales, which might help the cotton market.      

Thursday morning, USDA will issue weekly export sales. For last week's exports, sales were 160,000 bales, off some 435, while shipments were 250,000 bales, down approximately 27%.

Options on spot May futures expire this Friday on the close.    Brazil's President Lula is on a state visit to China. No doubt, with record corn and soybean crops, along with a huge cotton base, trade talks between Lula and Xi will be paramount. They will also discuss a plan to end the Ukraine/Russian war, and even "de-dollarizing" their economies.      

Crude oil was sharply higher Wednesday, as the CPI data indicated that inflation in the world is moderately increasing. Prices had risen about 2% on Tuesday in the hopes the Federal Reserve was nearing the end of its cycle of hiking interest rates.    

Wednesday, May 2023 finished at 82.45 cents, down 0.30 cent, July settled at 82.39 cents, down 0.52 cent and December 2023 ended at 82.43 cents, 0.47 cent lower. Estimated volume was 58,379 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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