DTN Closing Cotton 07/27 13:28
Cotton Finally Sticks Ninety Tuesday
For the first time, the December contract closed over the 90-cent mark.
DTN Contributing Cotton Analyst
For the first time, the December contract closed over the 90-cent mark. The
settlement has been a long time coming, as the last time the new crop had such
a close was June 4, 2018. That was the time of the implementation of the Trump
tariffs. At any rate, some traders feel a close over 90 cents sets the
technical stage for a challenge of the Trump tariff highs.
Thursday USDA will issue its weekly export sales. The expiration of the
2020-21 season will be one highlight of the report. There, traders will see the
amount of sales and shipment rolled forward into the new 2021-22 crop year.
However, another concern among traders is the hope that China will reemerge as
a top buyer. Of late, China has been a harsh critic of the U.S. over many
situations, including slave labor charges. However, it is also thought China
will expand its import quotas to offset the "tainted" cotton from the Xixiang
Provence, to spin and fill orders.
The U.S. dollar lost ground Tuesday to the euro and the yen. Anticipation
that the CDC will reorder the use of masked for indoor facilities is bearish to
the greenback. However, the yen saw appreciation via the Tokyo Olympics. The
Federal Reserve will announce its monetary policy Wednesday -- no change is
Tuesday, December settled 90.23 cents, up 0.63 cent, March ended at 89.81
cents, plus 0.56 cent and December 2022 ended at 81.28 cents, 0.53 cent higher;
estimated volume was 24,698 contracts.
Keith Brown can be reached at firstname.lastname@example.org or by calling
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