The cotton market was lower Wednesday as the U.S. dollar continued its upward push.

The cotton market was lower Wednesday as the U.S. dollar continued its upward push.

    Author: Vigotex /

Hi our beloved customers:

We would like to update cotton news by Vigotex:

  • ICE 2023 May: Closed 82.62 c/lb, -0.15 cents;
  • ICE 2023 July: Closed 83.25 c/lb, -0.33 cents;
  • ICE 2023 Dec: Closed 83.21 c/lb, -0.32 cents;
  • Estimated volume: 29,039 contracts

 

   The cotton market was lower Wednesday as the U.S. dollar continued its upward push. Fed Chair Powell's comments to the House Banking Committee further underscored the need for higher rates to crush inflation. In addition, the March WASDE was out essentially showing unchanged domestic numbers.

            USDA reported unchanged U.S. carryout of 4.30 million bales, but expectations were suggesting a smaller decline. World ending stocks jumped 2 million plus bales, as the tabulators adjusted the beginning stocks category. Otherwise, it was a "peaceable report."  

            March cotton will expire Thursday with the final close. Also Thursday, USDA will issue its weekly export-sales data. Last week's 170,000-plus bale sale was disappointing to traders. Given the fragile nature of the trade, a hefty Chinese number will go a long way towards helping attitudes and prices.

            This Friday, the monthly jobs report will be out. Expectations call for 213,000 new jobs versus last month's 517,000 jobs. Unemployment is expected to be at 3.5%. This report and next week's CPI data will greatly factor into the Fed's mid-March meeting concerning higher interest rates.

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