By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was lower Monday as traders awaited this week’s various reports. Those releases include Monday afternoon’s crop progress report. Traders will be scanning to see if Texas improved or worsened its standing.
Last week, Texas was rated record poor for this time of year. On Thursday, USDA will release its weekly export sales, followed by the June crop report. Current season sales are at 105% of USDA’s target. Lastly, the Commerce Department will also report on inflation.
However, the biggest report for calendar June will be its planted acres. To that end, USDA will release its survey of acres on June 30. Although USDA posted a preseason number of 12.00 million planted acres, much of the industry believes that number is way too high.
Options on the July futures expire this Friday, and soon after that contract will enter its delivery on June 24. The spot contract could still offer up some bullish fireworks given how strong demand has been of late.
The U.S. dollar was lower Monday as traders are considering the Federal Reserve’s next possible move. The Fed holds its policy meeting mid-month.
Monday, July cotton closed at 84.36 cents, down 1.44 cents, December settled at 85.26 cents, up 0.62 cent and March 2022 ended at 84.24 cents, down 0.49 cent; estimated volume was 45,351 contracts.