By Keith Brown, DTN Contributing Cotton Analyst
The cotton market ended lower Thursday despite seeing a very strong export-sales report earlier in the day. The report reflected a combined seasonal sales number of 581,000-plus bales. Exports were essentially unchanged at 351,900, but still was a meaningful number. Unfortunately, with rising interest rates and the end of the first quarter in sight for 2021, more than a few hedge funds felt the need to lighten their load. Thus, markets from crude oil to cattle to corn saw prices precipitously collapse.
Yields on the 10-year note traded as high as 1.73% Thursday. That increase caused the U.S. dollar to jump, and may be another reason commodities suffered lower. Last week, yields on the 10-year settled at 1.60%, while one year ago they were (point) .73%.
Heading into Friday’s session, May cotton is down 2.11 cents on the week, 3.38 cents down on the month, but up 6.75 cents on the year.
Friday, May cotton closed at 85.45 cents, down 1.06 cents, July settled at 86.42 cents, down 1.09 cents and December ended at 82.59 cents, down 1.13 cents; estimated volume was 21,378 contracts.