September 9, 2021
By Keith Brown, DTN Contributing Cotton Analyst
The cotton market was moderately lower Thursday as traders adjusted their position for Friday’s monthly supply-demand report.
The cotton market was moderately lower Thursday as traders adjusted their position for Friday’s monthly supply-demand report. Generally speaking, the trade is expecting less acres but increased yield. Prior to its release, USDA will issue its weekly export-sales report. Last week’s business was a dismal 125,000 bales sold.
The European Central Bank (ECB) announced “dovish tapering” Thursday at its meeting. This in turn bent the U.S. dollar lower. Next week, the Federal Reserve meets to detail its tapering plans. To date several Fed Governors have expressed their desire to pull away from stimulus and let the U.S. economy float on its own. To that end, the CDC announced Thursday that last week’s weekly COVID-19 infection rate was 109,000 cases, below the prior week.
Another Gulf Swirl is developing along the Central American coast. Currently, it is disorganized, and appears to be headed towards Mexico. However, as with Ida, “ya never know!”
For Thursday, December settled at 93.22 cents, down 0.86 cent, March ended at 92.41 cents, down 0.85 cent and December 2022 ended at 82.26 cents, 0.64 cent lower; estimated volume was 24,532 contracts.