Keith Brown DTN Contributing Cotton Analyst
The cotton market zoomed up and down the ladder, as spot March was squaring itself ahead of its delivery period. Other price drivers included a bearish Dow Jones, a solid U.S. dollar, and swinging energies and grains.
Wednesday marks the initial day of notices being issued against the March contract. The process runs through the contract's expiration, which is March 9.
Already are traders focusing on 2023 acres. A recent survey has planted acres near 11.4 million acres, versus the 13.8 million acres of last year. Mathematically, that suggests 2023 production at 16 million bales, plus or minus. Last year's crop was pegged at 14.7 million bales.
The U.S. dollar saw several positive and negative swings Tuesday, but essentially held steady against most global currencies. Domestic economic data continues to affirm the resilience of the U.S. economy, thus keeping pressure on the Federal Reserve to keep interest rates higher. Business activity in the United States unexpectedly rebounded as a recent retail sales number was strong.
Tuesday, March 2023 finished at 80.92 cents, plus 0.67 cent, May settled at 81.53 cents, up 0.03 cent, July closed at 82.37 cents, up 0.02 cent and December 2023, ended at 82.12 cents, 0.13 cent lower; estimated volume was 44,921 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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