The cotton market gave up its early gains to settle slightly higher Tuesday. Overall, the market continues to wait on different influences before deciding which way its next glide. The next two potentially market-moving events are this Thursday’s weekly export sales and next week’s monthly supply-demand data. To the former, sales have been running strong of late and, to the latter, there remains hope USDA will finally cut the crop below the 17.000 million bales mark.
Nearby March futures made it a see-saw ride last week and we began this week on a down note. After hitting the 74+cent level on Monday, prices moved sluggishly during the Holiday-shortened week but were then aided by a good export report on Friday.
March closed at 73.24 cents on Friday — up 88 points for the day which helped end the week on a positive note—up 28 points for the week. The see-saw continues as March closes down 109 points at 72.15 today.
ICE cotton futures fell 1% on Monday on worries over global demand for the natural fibre amid a surge in coronavirus cases. The cotton contract for March was down 0.74 cent, or 1%, at 72.50 cents per lb by 11:38 a.m. EST (1638 GMT), after rising more than 1% in the previous session.
It traded within a range of 72.41 and 73.48 cents per lb.
Given it was a holiday week with traders’ minds likely elsewhere, there was little in the way of market expectations. Surprisingly, however, significant price swings occurred each day, with March posting a slight gain for the week closing at 73.36.