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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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