By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was sharply higher Tuesday, even in the face of weakening Chicago grains, as field conditions across the belt are running the gamut of adversity. That is, West Texas is already melting, but now the Delta and the Southeast are fast becoming too wet to plow. Thus, traders are sensing a one-two bullish punch unfolding as the 2021 crop is attempting to be planted. December cotton now stands within 2.00 cents of hurdling its Feb. 25 high of 89.28 cents.
Thursday USDA will issue its weekly export-sales report. The agency has already had to revise its exports category higher to accommodate the superior sales occurring in the 2020-21 season. Yet, traders now think the exports will be hiked again on the May crop report on May 12.
The Fed will announce its latest take on monetary policy Wednesday afternoon. Traders think the Fed will continue its accommodative slant towards the U.S. economy. Thus, the US dollar could weaken smartly lower.
Weather-wise, Texas remains something of an oven, while additional rains are expected across the South this weekend.
Friday, May cotton closed at 90.07 cents, up 2.21 cents, July settled at 91.42 cents, up 2.20 cents and December ended at 87.20 cents, 2.25 cents higher; estimated volume was 27,981 contracts.
Source: Agfax