DTN Cotton Closing: Cotton Higher in Counter Trade
DTN Cotton Closing: Cotton Higher in Counter Trade

DTN Cotton Closing: Cotton Higher in Counter Trade

A- A+

By Keith Brown, DTN Contributing Cotton Analyst 

In a reversal of Monday’s lower closings, cotton finished Tuesday’s session higher. The market was encouraged by a smartly higher Dow Jones, plus there was some evident speculative buying. Supposedly, COVID-19 infections are falling, and there is word the Biden administration is wanting to fast-track a new COVID-19 relief bill through Congress. On the negative side, the U.S. Dollar Index was higher Tuesday versus other world currencies. The EU slower inoculation rate had currency traders selling the euro and buying the buck.

Energy prices continue to rise, which can be cotton-positive. With a troubled domestic energy industry, and OPEC reducing production, traders expect fuel prices to rally over the summer. Also, the lifting of any COVID-19 restrictions will encourage the stir-crazy population to travel.

Spot March cotton is prepping for its option’s expiration this Friday, and then its impending First Notice Day (deliveries) on Feb. 22. Regarding the latter, ICE warehouse stocks totaled 80,653 bales on Jan. 29, up 1,320 from the previous day and the highest they have been since Dec. 15. Stocks have increased for seven straight sessions.

Tuesday March cotton closed at 80.69 cents, up 0.66 cent, July settled at 82.99 cents, up 0.66 cent and December ended at 78.71 cents, up 0.77 cent; estimated volume was 52,107 contracts.


Source: Agfax

Tags

newsletter

Subscribe to our daily newsletter