By Keith Brown, DTN Contributing Cotton Analyst
Despite a surging U.S. dollar, the cotton market managed to post a slightly higher close Tuesday. Its strength was mainly derived from a strong U.S. retail sales number. Tuesday morning the Commerce Department reported a month-over-month retail sales number of 1.7% versus expectations for a 1% amount. Year-over-year retail sales stood at 16.31% compared to last year’s 14.26%. Some analysts believe as the curse of COVID-19 lifts, such sales will improve.
A private international research firm has issued its acres projection for the 2022 season. Those include corn at 90.80 million acres, which is 2.5 million below 2021. Soybeans were pegged at 87.90 million, plus 700,000 acres over 2021. Cotton was projected at 12.10 million acres, 903,000 from this past season.
Wednesday the Department of Energy will issue its inventory data for the energy sector. Last week OPEC forecasted weaker demand for oil for the fourth quarter by 330,000 barrels per day (bpd). Demand, especially in Europe, has been impeded by increased COVID-19 infections. Europe has become the new epicenter of the COVID-19 pandemic, prompting some governments to consider reimposing lockdowns. China is battling the spread of its biggest outbreak caused by the Delta variant.
Tuesday, December settled at 117.98 up .36 cent, March ended at 115.13 plus .49 cent, and December 2022 ended at 91.88, .22 cent lower. Tuesday’s estimated volume was 37,676 contracts.Πηγή: Agfax