Keith Brown DTN Contributing Cotton Analyst
After trading 3.00 cents lower in its overnight trade, cotton found a way to recover to close only moderately down Tuesday. Some traders feel the market is trying to bottom, but fears of recession, higher interest rates, and Chinese COVID troubles have kept cotton under pressure.
Weather-wise, the one- to five-day forecast holds virtually no rain for West Texas. With that, both the six- to 10-day and the eight- to 14-day forecasts call for much-above normal temperatures and below-normal precipitation for West Texas.
China stocks closed lower, with foreign investors dumping the most shares in more than a month, as rising COVID-19 cases and new banking woes are clouding the prospects for an economic recovery. That anxiety has traders worried about Chinese cancellations of U.S. cotton. The next exports-sales data comes this Thursday. On its last supply-demand update, USDA slashed Chinese and Indian consumption, thereby increasing global carryout. .
For Tuesday, December closed at 92.38 cents, down 0.62 cent, March 2023 finished at 88.65 cents, down 0.64 cent and July 2023 settled at 84.82 cents, down 0.44 cent; estimated volume was 18,314 contracts.
Keith Brown can be reached at email@example.com
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