By Keith Brown, DTN Contributing Cotton Analyst 

The cotton market posted a new contract high in price and settlement Wednesday, amid concerns dwindling global supplies. The most recent USDA supply-demand data had world carryout shaved some 1.60 million bales.

In addition, there is heightened talk that the agency has incorrectly assessed the size of the 2021 crop. That is, too many locales across the Cotton Belt have experienced too much rain, thus the plant’s root systems may be too shallow to see the crop through the dog days of August.

Thursday USDA will issue its weekly export sales data in the morning. Of late, Pakistan has been the dominant buyer of U.S. cotton, but traders are wanting to see China reassert herself as the main buyer. Last week both crop years combined accounted for 229,100 bales sold.

Weather-wise the five-day outlook has scant rain for West Texas, but the Delta and Southeast will experience sufficient afternoon thunderstorms. In the six- to 10- and the eight- to 14-day forecasts, the outlook indicates below-normal temperatures and above-normal precipitation across the Cotton Belt.

Wednesday, December settled at 89.81 cents, up 1.35 cents, March ended at 88.18 cents, plus 1.14 cents and December 2022 closed at 79.96 cents, up 0.26 cent; estimated volume was 29,963 contracts.