Keith Brown DTN Contributing Cotton Analyst
The cotton market kicked off Calendar May with a positive trade close today. The fact that the Funds were doubly net short in the CFTC data, as well as a slightly friendly jolt in this morning's domestic manufacturing data (the PMI) were seen as "lifting factors".
Today at 4pm, USDA will issue its weekly crop progress report. To date there have been no serious delays to emerge.
This week will likely see the Federal Reserve raising interest rates one-quarter point. It will be the tenth consecutive increase in rates in the central bank's efforts to curb inflation. The central bank will meet tomorrow and announce higher rates on Wednesday at 2pm.
On Friday, the Labor Department will release its monthly jobs report. Current estimates are calling for 180,000 new jobs. However, of late job growth has been falling. An uptick in new non-farm jobs might translate into an uptick in apparel sales.
The latest weather outlooks suggest up to one-half inch of rain for West Texas over the next five days. The extended six-to-ten and the eight-to-fourteen day forecasts also indicate above-normal chances of precipitation. Unfortunately, West Texas remains in the steep grip of last year's drought, thus a little bit of rain may ultimately prove to be unwanted for some growers. Today, May 23 finished at 79.54, plus 51, July settled at 81.31 up 51, and December 23, ended at 81.21, 11 points higher. Today's estimated volume was 19,222 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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