Keith Brown DTN Contributing Cotton Analyst    

Continuing to beat its own drum, the cotton market was sharply higher Tuesday. Speculators and funds were the obvious buyers Tuesday amid a weaker U.S. dollar, questionable Indian and Pakistani production, and an improving chart look.    

It was reported that China imported some 180,000 metric tons of cotton in November, which was up 85% over last year's draw. Its cumulative imports, to date, have reached 1.77 million metric tons, down 12.2% from last year. Still the importation news seems supportive.    

On Thursday, USDA will issue its weekly export sales. In recent weeks, sales numbers have been all over the place, ranging from net-negative reports to slightly positive releases, but going forward positive numbers, peppered with Chinese participation will be seen as a big market positive.    

The U.S. dollar was under pressure Tuesday, as the Bank of Japan indicated it will increase the band around its interest rates from 25 points to 50 points. It is tantamount to an interest rate increase by the Japanese.    

For Tuesday, March 2023 finished at 87.84 cents, up 3.76 cents, and July 2023 settled at 86.49 cents, 2.74 cents higher; estimated volume was 29,103 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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