The cotton market was sharply higher Wednesday amid a strong economic report from China

Hi our beloved customers:

We would like to update cotton news by Vigotex:

• ICE 2023 May: Closed 85.66 c/lb, +1.68 cents;
• ICE 2023 July: Closed  86.01 c/lb, +1.55 cents;
• ICE 2023 Dec: Closed 85.27 c/lb, +1.44 cents;
• Estimated volume: 31,859 contracts

  The cotton market was sharply higher Wednesday amid a strong economic report from China. Overnight, the Chinese PMI was released and it showed the official manufacturing PMI hit 52.6 in February, obviously above the 50-point mark that separates growth from contraction. In fact, it was the largest single month increase in 10 years. The January number was 50.1%. The report suggests China is making great strides in her COVID Comeback.

             There were zero deliveries seen against spot March. Its notice period runs through March 9.

            Thursday, USDA will release its weekly export-sales report. Interestingly, two out of the last three weeks posted marketing year high sales. Last week, Vietnam was the primary buyer.

            There is a certain amount of angst among traders over 2023 acres. The NCC survey indicated a 17% decline, while the USDA Ag Forum suggested a near 21% reduction. USDA's official Prospective plantings are due out on March 31, and its numbers will be the benchmark level the market will trade till early summer.

            The S&P was lower Wednesday, even as traders tried to recover their footing following a losing month in February. The downward move comes as bond yields extended their February gains, with the benchmark 10-year yield briefly topping 4% for the 4% for the first time since November. The one-year Treasury yield rose above 5%.