By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was slightly higher Tuesday as hedgers and speculators continue to make their necessary adjustments ahead of Wednesday’s USDA Planted Acres report. The average industry guess is 11.80 million. Last March the “peg” was 12.03 million and last year it was 12.09 million acres.
Chart-wise the trend of the general market certainly points higher. To see it visually, subscribers need only hold a cotton chart out at arm’s length and scan from the lower left corner to the upper right corner of the page to see the market is obviously moving north.
Immediately following the acres data, traders will turn their full attention to the weather situation. As of Tuesday, both the six- to 10- and eight- 14-day call for below-normal temperatures, and for normal to above-normal rainfall. Although there has been ample rainfall over much of the Cotton Belt, some areas are experiencing too much rain. Thus, sound development of certain parts of the crop may be in question.
For Tuesday, July closed at 86.49 cents, down 0.17 cent, December settled 87.58 cents, up 0.15 cent and March 2022 ended at 87.08 cents, 0.05 cent higher; estimated volume was 16,0018 contracts.