Cotton Melts Lower Wednesday
May 24, 2023
The cotton market posted triple-digit losses Wednesday, amid the ongoing negatives of Texas rains, unsuccessful budget talks and fears of rising interest rates.
The cotton market posted triple-digit losses Wednesday, amid the ongoing negatives of Texas rains, unsuccessful budget talks and fears of rising interest rates.
The one- to five-day forecast for West Texas generally calls for up to 2 inches of rain. Beyond that, the six- to 10-and the eight- to 14-day models also shows above-normal chances for precipitation.
The U.S. dollar traded higher Wednesday, as traders remain nervous over the U.S. debt ceiling negotiations. That anxiety has resulted in the Greenback taking on "safe haven" status. A financial default by the U.S. government could push the U.S. economy into a steep recession.
Thursday morning, USDA will issue its weekly export-sales report. Last week's data showed smaller sales, but slightly larger shipments. Although China holds the largest commitment to buy U.S. cotton, it has been running behind on those purchases.
Wednesday, July settled at 81.72 cents, down 2.63 cents and December 2023 ended at 80.28 cents, 2.16 cents lower. Estimated volume was 42,483 contracts.