By Keith Brown, DTN Contributing Cotton Analyst
After momentarily touching limit down Monday morning, the cotton market did see an acceptable recovery rally. Unfortunately, December still closed with triple-digit losses. The market was upended when the Chicago grains collapsed initially over bearish weather forecasts, and then ethanol formula tweaks proposed by the Biden administration. Of course, to some degree, cotton was slightly overbought.
Monday afternoon, USDA will update its crop condition ratings. Attention will be especially paid to the Delta as that area has been hit with severe flooding.
The National Hurricane Center is pinpointing two tropical depressions. One is off the coast of North Carolina; it is expected to move northward along the coast. The other is located in the lower Gulf of Mexico; it is expected to move to the central Gulf, strengthen, and make a landfall in Louisiana this weekend.
Tuesday, the Federal Reserve starts its two-day meeting concerning the U.S. economy and monetary policy. Depending on the wording of its Wednesday statement, traders will be looking for clues as to when or not the central bank raises interest rates.
Monday, July closed at 84.95 cents, down 2.05 cents, December settled 86.13 cents, down 1.79 cents, and March 2022 ended at 85.98 cents, down 1.75 cents; estimated volume was 45,155 contracts.