By Keith Brown, DTN Contributing Cotton Analyst
The cotton market closed diversely with old crop lower and new crop higher. To that end, some traders feel whenever the “bull spreads” sharply deviates, it is considered as a “topping sign.” This week saw weaker export sales, which bearishly affected the May and July contracts, while higher-than-expected planting intentions hurt the December cotton.
Next week, USDA will report export sales on Thursday, but will also issue its monthly April Crop data on Friday. Some traders expected U.S. exports to be increased, hopefully resulting in a lower domestic carryout. Additionally, it’s thought global stocks will see another downward revision.
The U.S. dollar was higher Friday after the key U.S. jobs more than green-lighted the Federal Reserve to hike interest rates. Some Fed governors are wanting at least a one-half percent increase. Additionally, the U.S. currency has also benefited from safe haven flows as peace talks between Russia and Ukraine stumbled.
Friday, May Cotton settled at 134.55 cents, down 1.14 cents, July closed at 130.93 cents, down 1.14 cents and December finished at 110.68 cents, 0.60 cent higher; estimated volume was 35,257 contracts.Πηγή: Agfax