Keith Brown DTN Contributing Cotton Analyst
Despite positive outside markets, cotton could not find any bullish footing to rally. The friendly CPI Report sent the Dow Jones and the energies up, while taking the U.S. dollar lower. In addition, weather concerns rammed the grains higher, but the cotton could not gain any traction. Possibly overhanging the market is the last of growers' holding their 2022 production. Those bales must be fixed by June 23.
The forecast for West Texas indicates above-normal temperatures and below-normal rainfall for the next few days. However, the six- to 10- and the eight- to 14-day outlooks call for above-normal temperatures, and normal to below-normal chances for rain.
The Labor Department will release its PPI numbers Wednesday morning. In a rough description, PPI measures inflation at the wholesale level.
The Federal Reserve is meeting Tuesday and will announce its interest rate decision Wednesday afternoon. As it stands, more traders now are expecting the central bank to hold steady, or pause, its interest rate hikes. However, many analysts are anticipating a rate increase at the July meeting.
Tuesday, July settled at 82.72 cents, down 0.77 cent and December 2023 ended at 81.02 cents, 0.30 cent lower. Estimated volume was 42,841 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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