Keith Brown DTN Contributing Cotton Analyst    

Despite positive reactions by surrounding markets to OPEC's reducing global production, cotton fell back into its sideways/bearish funk Monday. Essentially for the old crop, the managed-money funds remain net short, and supposedly there is also a hefty amount of unpriced 2022 production by Growers. For the new crop, Friday's reduced planting intentions were numerically friendly, but adverse weather will be needed to rally the market.    

This Friday, U.S. markets will be closed in observance of Good Friday/Easter. However, the Labor Department will still release its monthly jobs report Friday morning. This number will play a key role as to the Federal Reserve's decision on interest rates at its May meeting.    

Expanding on the OPEC news, the voluntary oil cuts will start from May 1 and run to the end of 2023. The cartel said the move was a "precautionary measure" toward stabilizing global crude prices. Specifically, Saudi Arabia output will fall some 500,000 barrels per day, along with the UAE reduction of 144,000 barrels. Other members, including Kuwait, Oman, Iraq, Algeria and Kazakhstan, will also reduce their respective outputs.    

The U.S. dollar was lower Monday, surrendering gains following the announcement of unexpected oil output cuts from OPEC. Earlier there was some economic data showing that the U.S. economy continued to slow with the decline in manufacturing and construction spending, which caused the greenback to rally.    

Monday, May 2023 finished at 82.38 cents, minus 0.40 cent, July settled at 82.64 cents, down 0.46 cent and December 2023 ended at 82.92 cents, 0.50 cent lower. Estimated volume was 35,471 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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