Vigotex - Cotton News 27/09/2022

Vigotex - Cotton News 27/09/2022

Hi our beloved customers:

We would like to update cotton news by Vigotex:

  • ICE 2022 Dec/ 12/ Tháng 12: Closed/收于/Chốt phiên 88.37 c/lb, -4.17 cents/ 美分/ điểm;
  • ICE 2023 Mar/ 3/ Tháng 3: Closed/收于/Chốt phiên 85.94 c/lb -3.73 cents/ 美分/ điểm;
  • ICE 2023 Mar/ 7/ Tháng 7: Closed/收于/Chốt phiên 81.64 c/lb, -3.14 cents/ 美分/ điểm;

Estimated volume/ 估计数量/ Khối lượng giao dịch ước tính: 43.152 contracts/ 合约 / hợp đồng.

The cotton market was sharply lower, closing in on limit-down, as the superior U.S. dollar, very slow demand, a fragile Dow Jones, the unfolding harvest, and the general overall feeling of economic despondency collectively wrecked the market Monday. In addition, the 11 a.m. update of the National Hurricane Center showed Ian's track shifting a tad more eastward towards Tampa.

            The U.S. dollar posted new highs for its move overnight. For the first time we are reading other analysts are now suggesting the Dollar Index will eventually test its all-time high of 121.19. Several Fed governors are speaking at several different forums this week, promoting the need for higher interest rates. A higher dollar is negative to U.S. agricultural exports.

            Monday afternoon USDA will update the condition of the crop via its weekly progress report. To some degree, Monday's data may be a moot point if Ian unloads on the Southeastern cotton crop this weekend. As of last week, the bolls opening category stood at 59%. This is the most vulnerable stage of the crop for heavy winds and rains.  

            Traders will be anticipating this Thursday's weekly export sales report. Of late, serious demand has been massively diminished. Of course, with harvest unfolding across the Northern Hemisphere, other countries may elect to utilize their own supply, given that the high-flying U.S. dollar makes it, to some degree, not cost effective to convert currencies and buy U.S. cotton.