DTN Closing Cotton 08/18 13:38
Cotton Trades the Range
The cotton market climbed up and down as if on a ladder Thursday.
DTN Contributing Cotton Analyst
The cotton market climbed up and down as if on a ladder Thursday. One moment
it was higher, then lower, then higher and finally moderately lower again.
Traders are battling the idea of a super-short crop versus a very overbought
technical situation. Thus, the two-sided action.
The U.S. dollar posted new highs for its current run Thursday. Wednesday,
Fed Minutes reinforced the notion that even higher rates were forthcoming. The
central bank will meet in September and traders are now expecting a
three-quarter point hike at that time.
Crude oil prices were higher Thursday amid lower U.S. inventories, and
expectations that Russian production will decline late year. Wednesday, the EIA
reported domestic crude stocks fell by 7.1 million barrels versus expectations
for a 275,000-barrel drop.
Heading into Friday's trade, December cotton is up 4.27 cents on the week,
up 16.18 cents on the month and is up 22.09 cents for the year.
For Thursday, December closed at 112.70 cents, down 0.84 cent, March 2023
finished at 109.76 cents, down 0.51 cent and July 2023 settled at 102.40 cents,
0.16 cent lower; estimated volume was 24,978 contracts.
Keith Brown can be reached at firstname.lastname@example.org
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