Keith Brown DTN Contributing Cotton Analyst
The cotton market was moderately higher Friday as traders adjusted their positions ahead of Monday's September WASDE. That report is expected to slightly increase the 2022 crop from the August data. In that latter report, government tabulators dramatically lower U.S. production by nearly 3 million bales. Traders will also be eyeing production numbers from India and Pakistan, as both nations have suffered adverse weather events and pest infestation.
The U.S. dollar was lower Friday and is on track for its first weekly decline in a month. A hawkish rate hike from the European Central Bank lifted the Euro, while the overbought Greenback saw profit taking. Next week there will be some key inflation data to be released.
USDA has promised to release weekly export sales next week on Sept. 15. That data has been absent from the market ever since the Agency attempted to move its reporting services to a new platform. That website froze-up, and thus there have been no "running numbers" released in a month.
Friday afternoon, the CFTC will update its commitment of traders report. Of late, the managed-money funds have increased their net long positions, but those numbers did not reflect cotton's recent 10-cent spill.
For the week, December finished 1.63 cents higher, but is off 8.37 cents on the month. Overall, the new crop market is up 12.19 cents for the year.
For Friday, December closed at 104.84 cents, up 1.00 cent, March 2023 finished at 101.45 cents, up 0.70 cent and July 2023 settled at 96.27 cents, 0.80 cent higher; estimated volume was 18,761 contracts.
Keith Brown can be reached at email@example.com
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