Keith Brown DTN Contributing Cotton Analyst    

The cotton market spent much of the day, flowing from positive to negative, as traders were likely squaring ahead of Wednesday's supply-demand report. In addition, cotton traders were watching the Dow Jones and the U.S. dollar for any price-moving insights. In the end, the market did close slightly higher.    

Tuesday afternoon, USDA will issue its holiday-delayed crop progress report. Traders are keen to see how much of the 2022 crop has been gathered.    

For Wednesday's WASDE, traders have the average guess for U.S. production is 13.34 million bales, versus September's 13.83 million. Exports are expected at 12.48 million, off from the 12.60 million seen in September. Carryout is expected at 2.46 million bales, compared to last month's 2.70 million. World carry is anticipated to be 84.64 million bales to the 84.75 million reported in September.    

Also Wednesday, the Commerce Department will issue its monthly PPI, and the Federal Reserve will reveal the minutes from its last meeting.  Then on Thursday, the CPI (consumer prices) will be published. Both reports will play a huge role in the Fed's decision for hiking interest rates.    

This Friday, USDA will publish its weekly export sales. Last week's sales were the highest in recent weeks at 121,000 bales. However, China was on holiday all of last week, so most likely she will not show as a buyer. In fact, China has been shuttering several cities following the conclusion of her week-long Golden Week celebrations.    

For Tuesday, December closed at 88.86 cents, up 0.63 cent, March 2023 finished at 87.31 cents, up 0.65 cent and July 2023 settled at 83.92 cents, unchanged; estimated volume was 39,102 contracts.    

Keith Brown can be reached at commodityconsults@gmail.com 

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