Keith Brown DTN Contributing Cotton Analyst    

The cotton market sharply sold down Tuesday, pretty much in sympathy with other markets. In fact, the December market nearly took out its 81.55-cent low of last week before executing a small recovery. There remains a tremendous amount of "demand uneasiness' with China, as it continues its unrelenting COVID-19 lockdowns. Of course, China is the world's biggest importer of raw cotton, while the U.S. is the world's top exporter.    

Energy prices fell Tuesday amid news the Biden administration is considering another oil release for the SPR as a means of "punishing" Saudi Arabia for its production cut. Currently, the U.S. strategic reserves are hovering just above 40-year lows.    

India is likely to produce 34.4 million bales of cotton this season, which is up 12% from a year ago. With government subsidies, farmers there are expanding the crop area. However, USDA just cut India's consumption by 1 million bales in last week's supply-demand estimates.    

Later this week, USDA will issue its weekly export sales. Of late, Pakistan has been the top buyer. It lost well over 50% of its crop earlier this year to a generational flood.    

For Tuesday, December closed at 82.29 cents, down 0.80 cent, March 2023 finished at 81.44 cents, 0.55 cent down, and July 2023 settled at 79.44 cents, 0.55 cent lower; estimated volume was 26,668 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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