Keith Brown DTN Contributing Cotton Analyst    

Even a cascading Dow, off roughly 900 points at one time, could not deter cotton from trading higher. Apparently, the upheaval in the financial markets, as well as China's warning over Taiwan, could not override the devastating weather gripping Texas and the cotton belt. Temperatures are expected to be in the triple-digits, with rain outlooks near nil for the next two weeks.    

Monday afternoon, USDA will issue its weekly crop progress and condition data. Thus far, the 2022 crop is being planted at its normal pace, but most likely the prevailing drought conditions across the Southwest are injuring yields.    

The Federal Reserve meets Tuesday and Wednesday. Traders are anxious to see what rate hike the Fed will employ. Supposedly, a 50-basis point increase is already baked in, but others are expecting 75-points. The U.S. dollar ran higher Monday, and is trading at 20-year highs.    

Crude oil sold off Monday as new COVID-19 flare-ups caused authorities to partially shutter Beijing, Shanghai, and other locales. Such action dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure. Beijing's most populous district Chaoyang announced three rounds of mass testing to quell a "ferocious" outbreak that emerged last week. Mass testing would take place until Wednesday.    

For Monday, July cotton settled at 145.66 cents, up 0.60 cent, December closed at 122.81 cents, up 0.45 cent and March 2023 finished at 118.21 cents, up 0.37 cent higher; estimated volume was 38,240 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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