Keith Brown DTN Contributing Cotton Analyst
The cotton market showed some resilience as the market side-stepped early selling to finish Friday materially higher. This week saw very positive news concerning China's economy, along with a respectable export-sales report. In addition, several individual Fed Governors have suggested a 25-basis point hike would satisfy them.
Thus, the dollar declined, while the Dow Jones zoomed higher.
There were no delivery notices issued against the spot March contract. The delivery period expires on March 9
Friday afternoon the CFTC will update another round of "missing" trade data. The agency shutdown releasing its commitment of traders information due to a cyberattack on a main reporting entity. Currently, the government watchdog plans to "phase in" the lost data, and all information should be rectified by mid-March.
Crude oil prices improved Friday after it was reported that the United Arab Emirates is not planning an exit from the Organization of Petroleum Exporting Countries (OPEC). It had been suggested that the UAE might leave OPEC to pump more oil.
For the week we note that May cotton is down 0.73 cent, but up 0.14 cent for the month and up 0.72 cent on the year.
Friday, May 2023 finished at 84.17 cents, plus 0.46 cent, July settled at 84.79 cent, up 0.38 cent and December 2023 ended at 84.26 cents, 0.51 cent higher; estimated volume was 22,426 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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