Market Movement from 20th Mar 2023 to 25th Mar 2023.
• NY May prices experienced a weekly loss of 1.29 cents, dropping from 77.83 on 17-Mar to 76.54 on 24-Mar.
• Cotton prices were affected by the ups and downs of the stock market on Monday, with traders awaiting the Federal Reserve's interest rate announcement. A major research firm has released intentions for US row crops, and cotton acres for 2023 are predicted to be 79% of those of 2022.
We are getting ready for the third consecutive week with essentially all cotton contracts below 80 cents. In fact, 80 cents is in the rear view mirror. Prices were hammered all week, the result of domestic and international economic news. U.S. congressional spending has essentially blown the markets out of the water. The economy is six months into an eighteen—twenty-four month fix.
• Financial Markets Had Another Volatile Week • Cotton Market Shrugged Off Strong Export Sales Report • No Substantial Moisture in the Forecast for West Texas
Cotton futures struggled to find support this week while outside markets continued to weigh on prices. May futures dropped below 80.00 cents per pound last week and were unsuccessful when trying to break out of the upper-70s trading range at present.
The cotton market was lower Friday as bearish outside influences discouraged buyers.
The cotton market was lower Friday as bearish outside influences discouraged buyers. To that end, banking stocks have been battered in the last two weeks following the sudden failures of two U.S. lenders and the emergency sale of embattled Swiss bank Credit Suisse to rival UBS. Then, overnight, Deutsche Bank was thought to be in trouble. With that the U.S. stock market weakened.
You really do not want to read this. I know you don’t.
This bear is a bit bigger and meaner than thought just two weeks ago. There is a very bright future for cotton. Yet first, the market will suffer through an even more bearish cycle than the present one. Sadly enough, the cotton market is preforming just as it had advertised. Yes, it is searching for a bottom and that should be close, but there are no horseshoes in this ring. The probabilities suggest another 3-4 cents lower.