The cotton market ended its Thursday session lower in the face of a rising U.S. dollar and a sharp decline with industrial commodities. Crude Oil was down some 3%, along with Copper and Lumber, as concerns heighten for the domestic economy. Naturally, with cotton being a member of the grouping of industrial commodities, it declined as well.

Cotton also sloughed off a strong export sales data Thursday morning, disappointed by the fact that essentially only two countries bought the lion’s share of fiber. The lack of other buyers suggests global demand is waning. Afterwards, the market embraced a bearish supply-demand report. USDA projected new crop carry (2020-21) higher than its May estimates. In short, U.S. ending stocks were placed at 8.0 million bales and world stocks were pegged at 104.50 million bales. One has to go back to April 2008 to see higher U.S. stocks that were 9.70 million. Interestingly, world carry stood at 59.64 million at that same time.

Friday, options for the July contract expire. Given that contract settled below 60 cents, as it stands, all call options north of that number are in jeopardy of expiring worthless. So far spot July will enter Friday’s trade down 1.77 cents on the week, 2.43 cents up on the month, but still down10.93 cents for the year.

July cotton closed at 60.02 cents, down 0.49 cent, December ended at 59.49 cents, down 0.83 cent and March finished at 60.02 cents, down 0.89 cent. Estimated volume was 51,521 contracts.