Keith Brown DTN Contributing Cotton Analyst
The cotton market was sharply higher Friday in response to friendly outside markets and the ongoing drought situation now occurring in China's Yangtze River Valley. That area is suffering the deepest, longest heat wave in 60 years. The result of which is a thirsty population and ruined crops.
The U.S. dollar posted new highs for its current run Friday. Wednesday's Fed Minutes reinforced the notion that even higher rates were forthcoming. The central bank will meet in September and traders are now expecting a three-quarter point hike at that time.
Crude oil prices were higher Friday amid lower U.S. inventories, but also due to Europe's largest nuclear facility being caught up in the Ukraine-Russian War. Allegedly, Russian troops now occupy the facility, but shelling from both sides has the international community worried about a nuclear catastrophe.
December Cotton is up 7.42 cents on the week, up 19.27 cents on the month, and is up 23.36 cents for the year. For Friday, December closed at 116.01 cents, up 3.31 cents, March 2023 finished at 112.84 cents, up 3.08 cents and July 2023 settled at 105.20 cents, 2.80 cents; estimated volume was 24,304 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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Source: qualitygin.com