Keith Brown DTN Contributing Cotton Analyst    

The cotton market was sharply lower Wednesday as both speculators and hedgers loaded up on the selling side of the trade. Of course, speculators tend to trade the market according to the ebb and flow of prices and given that futures have been in a decline, they were aggressive sellers. However, cotton producers, who had been anticipating even higher prices, saw the proverbial rug being pulled out and also came in as sellers. Thus the 900-point decline since Monday night's opening.    

On Friday, July cotton will enter its delivery. The market will expire on July 7. Any open position after Thursday's close will be subject to the machinations of the delivery process.    

Also, weekly export sales are delayed until Friday a result of Monday's observance of Juneteenth.    

Fed Chairman Jerome Powell told Congress on Wednesday that the central bank is "strongly committed" to bringing down inflation and has the monetary policy tools to do so. Naturally, that means higher interest rates until, as the chairman said, "compelling evidence" emerges that inflation is coming down.    

The one- to five-day forecast indicates virtually no rain for Texas, but the six- to 10-day forecast is more forgiving. It suggests better chances for rain with moderating temperatures. The eight- to 14-day outlook calls for warmer, but slightly wetter conditions for West Texas as well.    

For Wednesday, July cotton settled at 143.32 cents, down .19 cents, December closed at 108.07 cents, minus 5.78 cents, and March 23 finished at 103.67 cents, 600 points lower. Wednesday's estimated volume was 57,658 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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