By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was demonstratively lower Tuesday amid year-end position-squaring by speculators and season-end grower selling. However, volume was considered to be weak and not commensurate with such a decline.
With the market hovering near 10-year highs, such radical price gyrations are to be expected. To that end, the Chicago Grains were lower, but most financial markets remained firm. In fact, the Dow Jones posted a new contract high.
Traders will be greatly anticipating this Thursday’s weekly export-sales report. Last week’s business was taken as supportive to traders, as the all-important shipment number rose above the four-week average. China was the top buyer.
The Case-Shiller 20-City home price index was out Tuesday, revealing an 18.4% increase for October. The gain marked a slight deceleration from a 19.1% year-over-year increase in September but was in line with economists’ expectations.
The National Association of Realtors reported last week that sales of previously occupied homes rose for the third straight month in November to a seasonally adjusted annual rate of 6.46 million. New home building and renovation is a big domestic consumer of U.S. cotton.
Tuesday, March cotton settled at 110.05 cents, down 2.23 cents, July ended at 105.31 cents, down 1.41 cents and December ended at 91.30 cents, 0.64 cent lower; estimated volume was 15,666 contracts.Πηγή: Agfax