By Keith Brown, DTN Cotton Correspondent
The cotton market was timidly higher Friday, but was significantly lower on the week. Of course, the driving force behind its prices was the uncertainty and the psychologically of the coronavirus.
Seemingly, with the U.S. going into a national lockdown of sorts, most traders maintained a liquidation only mindset. Thus to reiterate, for the week spot May is down 2.31 cents, for the month 0.96 cent off, and for the year, it is down 10.06 cents.
Into next week, the coronavirus will continue to dominate all markets. In fact, as testing kits are applied, the U.S. may witness a huge spike with infections, resulting in more price angst. Interestingly, we never hear about the number of people who have “beat the virus,” which would help the psyche of the marketplace.
Anyway, next week, the U.S. will be operating on a national emergency advisory, which means additional federal funds will be available to fight the virus.
USDA will report on export sales next week, and to that end, we are not sure how much more bullish the cash cotton can be. In the last five weeks, the government has reported marketing-year-highs three times, with this week’s combined tally over 600,000 bales. China is beginning to return as a consist buyer.
May cotton closed at 60.49 cents, up 0.79 cent, July finished at 60.76 cents, up 0.41 cent and December ended at 61.22 cents, up 0.38 cent. Estimated volume was 59,822 contracts.