Traders felt encouraged to buy Cotton!

Traders felt encouraged to buy Cotton!

Hi our beloved customers:

We would like to update cotton news by Vigotex:

  • ICE 2023 Mar/: Closed 82.82 c/lb, +0.53 cents;
  • ICE 2023 July: Closed 83.30 c/lb, +0.43 cents;
  • ICE 2023 Dec: Closed 81.51 c/lb, +0.72 cents;
  • Estimated volume: 31,525 contracts.

The cotton market was slightly elevated Tuesday, as short covering and bottom pickers buoyed the market. Last Thursday, the market suffered a huge fundamental blow as USDA bearishly upped both production and carryout categories. However, since that time -- seeing no follow-through selling on Friday -- traders felt encouraged to buy it.

            Wednesday morning, the Commerce Department will release its PPI report. Its data reflected the pace of inflation at the wholesale level. Expectations call for a year-over-year decline to 5.7% versus last month's 6.2% pace. That number will be in light of last week's CPI, which indicated a small dent in the pace of consumer prices. In addition, Retail sales will be issued. That data should be reflective, among many items, apparel sales for the holidays.

            The U.S. dollar was lower Tuesday, weighed down by expectations of a possible policy shift at the Bank of Japan. That new twist involves the so-called "yield curve control," which could be a precursor to Japan adopting a tighter monetary policy. The expectations have pushed the yen higher against the  dollar over the last few weeks. Since Jan. 6, the yen has surged nearly 5% against the greenback. Of course, the Federal Reserve will meet late this month to determine its next move in the fight against inflation. The majority of most traders are anticipating a 25-basis-point increase, but some still see the possibility of a 50-point jump.