Keith Brown DTN Contributing Cotton Analyst
After a week of basically negative news, the cotton market scored a win in that it closed higher on the week. During the week, the market saw an uptick in interest rates by the Federal Reserve, terrible export sales from USDA, and confirmation of a recession when Q2 GDP data was negative. However, the withering Texas Crop continues to lose acres and yield.
Friday afternoon, the CFTC will issue its latest commitment of traders report. Last week the managed-money funds net 34,700 contracts.
Crude oil was sharply higher Friday, as traders turned their attention to next week's OPEC+ meeting on Aug. 3. It is generally thought the cartel will keep crude production steady into September. A decision not to raise output would come as a slight to U.S. President Joe Biden, who visited Saudi Arabia this month hoping to strike a deal to increase supply.
As noted earlier for the month of July, December cotton finished up 9.85 cents for the week, down 2.10 cents on the month and up 4.09 cents on the year.
For Friday, December closed at 96.74 cents, up 0.53 cent, March 2023 finished at 93.51 cents, up 0.84 cent and July 2023 settled at 90.18 cents, 0.87 cent higher; estimated volume was 18,274 contracts.
Keith Brown can be reached at email@example.com
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