Keith Brown DTN Contributing Cotton Analyst    

The cotton market saw a two-sided close, as the new crop was higher, but spot July finished lower. This Friday is the last time for participants to exit spot July and avoid delivery. Additionally, most markets were lower Tuesday, based on lingering hawkish comments stemming from the Federal Reserve's last meeting    

Weather-wise, the immediate forecast calls for possibly up to 2 inches of rain for West Texas and the Panhandle. The outlook for the next seven days calls for above-normal temperatures and near-normal rainfall. The extended eight- to 10-day indicates above-normal temperatures and below-normal rainfall.    

An international news source suggests that in the future, the cotton business between China and Brazil may be settled in Chinese Yuan. Brazil is making this move in the hopes of overtaking the U.S. in cotton exports to China. In the first quarter of 2023, China imported 382,000 metric tons of cotton, with 52.2% originating with the U.S. and 31.5% from Brazil.

According to the weather authorities in India, the current monsoon season needs to establish itself within the seven days. Currently the normal monsoons have been stalled, and additional delays could spark concerns about this year's crop.    

Tuesday, July settled at 80.66 cents, down 0.80 cent and December 2023 ended at 80.70 cents, up 0.60 cent and March was 80.79 cents, up 0.59 cent. Estimated volume was 36,868 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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