By Keith Brown, DTN Contributing Cotton Analyst
The cotton market fell Wednesday to its lowest level since Jan. 28. After collapsing some 2.00 cents early on, ICE futures saw renewed buying and was able to cut the losses to double digits.
Ongoing anxiety over Russia/Ukraine, plus the anticipation of March cotton’s delivery next week, weighed on prices. The U.S. and NATO said on Wednesday that Russia was still building up troops around Ukraine despite Moscow’s insistence it was ordering some troops “back to barracks.”
Traders are looking towards Thursday’s weekly export sales for some price direction. Last week’s business was characterized as less than stellar with net sales of 185,200 for 2021-22. The prior week saw combined seasonal sales of 600,000-plus bales.
The Commerce Department reported improved retail sales for January. Consumer spending rose some 3.8% for the month, despite a higher inflationary environment. Pre-report estimates called for sales to be 2.1% higher.
Wednesday, March cotton settled at 121.91 cents, down 1.13 cents, July ended at 116.78 cents, down 1.25 cents and December finished at 102.82 cents, 1.26 cents lower; estimated volume was 42,592 contracts.Πηγή: Agfax