Keith Brown DTN Contributing Cotton Analyst    

The cotton market closed sharply higher Tuesday. The news of an improved PPI number, which weakened the U.S. dollar, helped to spur the move. In addition, USDA has the 2022 harvest at nearly three-quarters complete. Traders may also be anticipating improving retail sales tomorrow, as well as strong export sales on Thursday.    

Although the Chinese Government began to loosen some COVID-19 restrictions last week, there were increased weekend infections, which dampen that enthusiasm. However, it is still possible the government is committed to lifting such restrictions as soon as it can.    

The energy market was higher Tuesday, reversing their earlier negative trade. Concerns about tight supplies this winter continue to support oil prices. Moreover, Europe will embargo Russian oil commencing Dec. 5. The ban will be followed by the halting of oil product imports in February. The EU ban suggests some 1.1 million barrels per day will need to be replaced.    Wednesday morning, retail sales will be out, as well as the weekly energy inventory from the EIA.    

For Tuesday, December closed at 88.74 cents, up 3.46 cents, March 2023 finished at 86.97 cents, up 3.35 cents and July 2023 settled at 84.42 cents, 2.85 cents higher; estimated volume was 54,590 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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