DTN Cotton Close: Reflects Overall Positive Commodity Tone
DTN Cotton Close: Reflects Overall Positive Commodity Tone

DTN Cotton Close: Reflects Overall Positive Commodity Tone

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By Keith Brown, DTN Contributing Cotton Analyst

Cotton closed higher Tuesday, reflecting the overall positive tone seen across the majority of commodities markets. Amazingly, Tuesday was virtually a complete about face from Monday’s negative omicron news. Most markets were inspired by Fed Chairman Powell’s confirmation testimony in which he categorized inflation as being “entrenched,” rather than “transitory.”

Thursday, USDA will report on weekly export sales. Last week’s business showed sales of 143,200 bales, off 26%, with China being the top buyer (47,000 bales). Actual Shipments were 104,900 bales, down 35% week over week.

The CDC has reported that the number of patients with COVID-19 in U.S. hospitals surpassed last winter’s peak, with the U.S. reporting a single-day record of 1.5 million COVID cases on Monday. Even though omicron appears to be less severe of a disease, U.S. hospitals can still be strained due to the high volume of patients and staffing shortages. The influx of cases could negatively affect future apparel demand.

Tuesday, March cotton settled at 116.02 cents, up 0.80 cents, July ended at 111.61 cents, up 0.93 cent and December finished at 95.27 cents, 0.35 cent higher; estimated volume was 26,386 contracts.

Source: Agfax

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