By Keith Brown DTN Cotton Correspondent
Cotton was able to tap on the bearish brakes Wednesday and settled essentially unchanged on the day. On Tuesday, selling emerged from a negatively construed supply-demand report and the market’s overbought condition. Tuesday’s volume was a hefty 60,000-plus. Still, one report doesn’t make a bear market. In fact, if Thursday’s weekly sales and exports report reveal strong numbers, the market is apt to surge higher.
Tuesday saw May cotton come within 0.60 cent and July within 0.45 cent of the all-important 80-cent mark. Our experience suggests for the market to get that close and not hurdle the 80 mark doesn’t happen often.
Thursday morning, USDA will issue its weekly sales and shipments data, which, going forward, will play a huge role in the life of the market. Last week saw sales combined crop year sales of 475,000 and exports of 400,000 bales. China was a net participant in both crop seasons. Their appearance is not only a financial boon, but a psychological one as well. Thus, if Thursday’s business, as well as subsequent export-sales are massive, old crop should soon vault the 80-cent mark.
Thursday May cotton settled at 77.62 cents, down 0.47 cent, July was at 78.46 cents down 0.01 cent and December finished at 77.02 cents, up 0.13 cent. Wednesday’s estimated volume was 55,000 contracts.
