DTN Cotton Closing: Markets Correcting Higher
DTN Cotton Closing: Markets Correcting Higher

DTN Cotton Closing: Markets Correcting Higher

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By Keith Brown, DTN Contributing Cotton Analyst 

After its limit-down thud of Tuesday, the market is showing signs of recovery Wednesday. In effect the market did a midnight turnaround, and Wednesday morning it was already positive. Then additional buying came from bullish bargain-hunters and short-covering. At one time old crop had traded up 2.00 cents, thus gaining back about one-half of Tuesday’s loss.

Thursday, USDA will issue its weekly export-sales report. As it stands, current season sales are running ahead of USDA’s five-year average.

The U.S. dollar was slightly lower Wednesday, as both gold and the Dow Jones were higher. Thursday the U.S. Treasury will conduct its weekly auction. Of late, it has taken higher interest rate returns on T-bills, T-notes and T-bonds to draw in investors. The higher the rate the more strength the dollar acquires.

On Friday, the CFTC will release its commitment of traders data. Unfortunately, the data is a week old when issued, but it still may offer a glimpse as to which way managed-money funds are leaning.

Wednesday, May cotton closed at 85.22 cents, up 0.90 cent, July settled at 86.05 cents, up 0.76 cent and December ended at 82.42 cents, up 1.02 cents; estimated volume was 44,854 contracts.


Source: Agfax

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