By Keith Brown, DTN Cotton Correspondent
The cotton market ended Wednesday’s session near limit-up, as previously short-sold speculators bought back their contracts amid harvest woes from down under. Managed money funds were already reported to have a net short position, to which they added additional bearish positions last week.
Then, Wednesday came news the Australian 2020 crop is turning out to be one the smallest and worse yielding since the 1980s.
Thursday, USDA will report on the latest export sales. Expectations are calling for more cancellations by foreign mills, as well as reduced shipments. Currently, several top U.S. customers are shuttering their mills as means of reducing the spread of coronavirus.
A positive for all markets on Wednesday was crude oil’s positive close. Although that particular market may not be out of the proverbial “storage woods” yet, no question a higher close helped ease the bearish psyche that Monday’s sub-zero settlement caused.
May cotton closed at 56.28 cents, up 2.97 cents, July ended at 56.14 cents, up 2.83 cents and December finished at 57.68 cents, up 2.52 cents. Estimated volume was 44,238 contracts.