By Keith Brown, DTN Cotton Correspondent
The cotton market couldn’t “stand the prosperity” of the Dow Jones — whatever that suggests — and closed lower. The Dow was trading positive into cotton’s close as Trump Administration officials presented all sorts of varieties of financial help at a TV news conference.
Still, the markets are twisted and turned inside out by the frustration and fears of the coronavirus. Scares of a national lockdown are running as the general perception among many people is the full brunt of the virus is just starting in the United States.
Such negativity has not been seen by the American people since 9/11. However, as tragic as that event was, 9/11 was a definable occurrence, whereas this creeping coronavirus is an invisible terrorist. So, liquidation is the order of the day for most markets, including cotton, no matter how bullish its direct fundamentals are.
Thursday will see the next round of exports-sales. Last week’s business was dynamic with all sales upland, and Pima nearly reaching 600,000 bales, but one wouldn’t know it by Tuesday’s price action. It will be interesting to see whether China repeats as a major buyer, as its participation suggests it indeed is getting beyond the virus and stoking its textile industry.
For Tuesday, May Cotton settled at 57.82 cents, down 0.88 cent, July ended at 58.35 cents, down 0.76 cent and December closed at 59.10 cents, down 0.59 cent. Estimated volume was 38,362 contracts.