Keith Brown DTN Contributing Cotton Analyst    

In its worst trading day of the year, the cotton market closed below the psychologically-important level of 80 cents. A sharply lower Dow, fear of rising interest rates and producer liquidation all contributed to the sell-off. For the week, May cotton is off some 6.00 cents.    

Friday afternoon the CFTC will update its commitment of traders report. At last count the managed-money funds virtually held a flat position.    

Next week, traders will get another read on inflation via Tuesday's CPI and Wednesday PPI reports. If inflation continues to read hot, then the central bank may very well pump rates 50 basis points higher at its March 21 meeting.    

Crude oil prices edged slightly higher Friday on better-than-expected U.S. employment data, although both WTI and Brent are set to fall more than 4% on the week. Expectations for additional rate hikes are disrupting the outlook for global growth.    

Friday, May 2023 finished at 78.18 cents, down 4.00 cents, July settled at 78.94 cents, down 3.94 cents and December 2023, ended at 80.25 cents, 2.82 cents lower; estimated volume was 67,371 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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