Keith Brown DTN Contributing Cotton Analyst    

The cotton market flirted with limit-up today as traders covered previously short positions as well as bought net long. The positive move was abetted by huge bullish runs in the grains, energies, metals, and stock futures. Also, there were rumors that China is set to do a massive stimulus package.    

Weekly exports sales were delayed till tomorrow at 8:30 a.m. Last week saw old crop sales at 48,000 bales, and new crop sales at 46,000 bales, with exports off 2% weekly at 364,000 bales.    

Weather-wise, the 6-to-10 day forecast calls for above-normal temperatures for much of the cotton belt, but there are also increased chances for above-normal precipitation. The 8-to-14 day has moderating temperatures, with mostly above-normal rain opportunities as well.    

July cotton expired today at 98,12, up 343 points.    

The US Dollar was slightly higher today. However, the British Pound was higher on the news Prime Minister Boris Johnson announced he was stepping down due to a series of political scandals.    

Traders are waiting for Friday's jobs data, as well as consumer price numbers out next week. Those should signal the pace of inflation and whether the Federal Reserve continues to aggressively hike interest rates when policymakers meet on July 26-27.    

Crude oil was sharply higher today. Recently, oil prices have slid alongside other commodities such as metals and palm oil as central banks across the world raised interest rates to battle inflation, fanning fears of recession that could dampen demand for commodities.    

For today, July Cotton settled at 98.12, up 343, December closed at 91.88, plus 327, and March 23 finished at 88.00, 332 points higher. Today's estimated volume was 27,231 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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