Keith Brown DTN Contributing Cotton Analyst
March 23, 2023
The cotton market was moderately higher Wednesday as traders awaited the outcome of the Federal Reserve's rate announcement. Essentially, the central bank raised interest rates by one-quarter point, but also implied that future rate hikes may be put on hold. That news sent the U.S. dollar lower.
Thursday morning, USDA will issue its weekly exports-sales report. Last week's old crop sales were 225,000 bales, with Vietnam as the top buyer with 120,000 bales. Friday next week, March 31, USDA will publish its acres intentions survey for 2023 production. Several private groups are forecasting a sharp reduction, perhaps as much as 20%-plus, for the new crop market.
Tuesday, the CFTC updated its Commitments of Traders data. The report showed managed money traders were net sellers of 10,751 contracts which increased their net short to 13,653. This Friday, the CFTC will present its normal trader summary.
Wednesday, May 2023 finished at 78.28 cents, plus 0.43 cent, July settled at 78.89 cents, up 0.44 cent and December 2023, ended at 79.81 cents, 0.27 cent higher; estimated volume was 27,780 contracts. (Source: qualitygin.com)