Keith Brown DTN Contributing Cotton Analyst
The cotton market was lowered Tuesday amid deteriorating outside forces. The Dow posted new lows for the year, while metals, grains and energies all declined.
Wednesday the Federal Reserve will announce its latest interest rate policy. At risk is a three-quarter to full point hike. That would send stocks and commodities lower, while elevating the U.S. dollar.
Weather-wise the six- to 10-day and eight- to 14-day forecast look dire for West Texas and for much of the Cotton Belt. Above-normal temperatures and below-normal precipitation will rule the next two weeks.
Tuesday, natural gas prices collapsed on the news that Freeport LNG, America's number two LNG producer in the U.S., which suffered a fire last week, indicated it would be offline for some time. The thinking is domestic natural gas supplies will build.
For Tuesday, July cotton settled at 143.48 cents, down 2.18 cents, December closed at 120.65 cents, down 2.16 cents and March 2023 finished at 116.04 cents, down 2.17 cents higher; estimated volume was 25,656 contracts.
Keith Brown can be reached at firstname.lastname@example.org
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