DTN Closing Cotton            05/23 13:41

   Cotton Ends Monday Up

   The cotton market finished slightly higher Monday, although early in the 
session, it was materially up.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market finished slightly higher Monday, although early in the 
session, it was materially up. The market was strengthened by the late Friday 
comeback of the Dow, as well as the stock market 700-point positive zoom 
Monday. However, the cotton market may have tempered its enthusiasm amid 
President Biden's remark of how the U.S. will militarily defend Taiwan from a 
Chinese takeover.

   Monday afternoon, USDA will update the planting progress for the 2022 crop. 
Last week's numbers showed that the current crop planting activity was 37% 
versus its five-year average of 37% complete.   

   The one- to five-day outlook calls for heavy rainfall in eastern Texas, with 
some precipitation hitting West Texas. The six- to 10-day calls for 
below-normal precipitation and above-normal temperatures, while the eight- 
14-day model shows above-normal rainfall.

   Crude oil reversed its earlier gains and moved lower Monday afternoon. The 
market was supported by U.S. fuel demand, tight supplies and a lack of progress 
towards a European ban on Russian oil. However, concerns that lockdowns in 
China will affect economic growth internationally are giving trades pause. The 
U.S. peak driving season traditionally begins on Memorial Day weekend and ends 
at Labor Day.

   For Monday, July cotton settled at 142.75 cents, up 0.48 cent, December 
closed at 125.98 cents, up 0.80 cent and March 2023 finished at 121.78 cents, 
0.94 cent lower. Monday's estimated volume was 23,924 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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