By Keith Brown, DTN Contributing Cotton Analyst
The cotton market finished higher Monday, although it was not the bullish “shoot ’em up, cowboy” session that some were anticipating. In fact, it was a touch odd that cotton was so muted in the face of the high-flying Chicago grains. Old-crop corn settled at limit-up. At any rate, July cotton posted its highest close since March 3. Traders continue to monitor the harsh weather of West Texas. One Lubbock area subscriber described his weather by saying “it’s clear, windy and super-dry.”
Traders are anticipating the two-day Federal Reserve meeting scheduled to begin on Tuesday. Fed Chair Jerome Powell will likely reiterate that the Fed will remain extremely accommodative and look past any temporary spikes in inflation.
Monday afternoon USDA will issue its update on the planting progress of the 2021 crop. Thus far, the pace has been in line with historical levels.
The market is also awaiting Thursday’s weekly export sales. With cotton stocks under 4.0 million bales, anymore huge sales will likely tighten cotton’s “rubber band” more.
Monday, May cotton closed at 87.86 cents, up 0.35 cent, July settled at 89.22 cents, up 0.42 cent and December ended at 85.02 cents, 0.02-cent higher; estimated volume was 24,456 contracts.
Source: Agfax