By Keith Brown DTN Cotton Correspondent
The cotton market staged another bullish session Friday, as speculators covered additional positions ahead of the three-day Memorial weekend. Although the December contract is up about 1.25 cents for the week, it roughly down some 8.00 cents for the month, with the final week of May being next week.
Because of the holiday on Monday, USDA will issue its next planting progress on Tuesday and weekly sales and exports are delayed until Friday.
Some traders have suggested that if the old crop has posted even a prospective bottom, overly nervous cash buyers are apt to become more active in the old crop cash market. Last week saw combined sales of both crop years tally over 500,000 bales.
Weather will be a key fundamental to watch over this long holiday. As it stands, Texas looks subject to more rain, as does the northern Delta, while the Southeast is melting. Thermometer readings are showing that mid-to-upper 90s will dominate the forecast.
With the approach of June, the market will see another round of vital USDA data. The monthly supply-demand report comes on June 11, and the Planted Acreage Report is due on the Friday, June 28. July Options will expire on June 14 and July’s delivery will commence on June 24.
Right about that time the G-20 meeting in Japan falls on June 28-29. Supposedly, Presidents Trump and Xi will gather to jump start the stalled trade talks.
Friday July cotton settled at 68.39 cents, up 0.91 cent, December finished at 67.55 cents, up 0.72 cent and March cotton closed at 68.34 cents, up 0.78 cent. Estimated volume was 25,860 contracts.
