By Keith Brown, DTN Contributing Cotton Analyst
The cotton market tried to extend its Monday recovery, but fell short, albeit on low volume. Too much anxiety with the outside financial markets, plus an improving crop condition report from USDA, kept any upside potential in check. The next direct factor for cotton will be Thursday weekly exports-sales. If sales are shown to be net positive, with some positive participation by China, the market might attempt to maintain its upward, but fragile, trend.
Friday marks the end of the 2019-20 season. With its passing there may be a certain amount of undelivered sales to be rolled forward into the new season. Supposedly less than half of 2019-20 sales have actually been shipped. The other alternative would be to see cancelations of some size in subsequent weekly reports.
The U.S. dollar is currently threatening its summer support of 2018! The fear now is U.S. interest rates will go negative, and no one knows the ramifications of that action. The Federal Reserve will announce its monetary policy Wednesday and we wonder if it will comment on the Dow and the meteoric rise in gold.
For Tuesday, December cotton closed at 61.11 cents, down 0.05 cent, March settled at 61.83 cents, down 0.02 cent and December 2021 ended at 61.70 cents, down 0.03 cent. Estimated volume was 12,654 contracts.
Source: Agfax