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DTN Closing Cotton 05/01 13:40
Cotton Keeps Bleeding
The cotton market continues to post new lows for the move with triple-digit
closings Wednesday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market continues to post new lows for the move with triple-digit
closings Wednesday. Old crop July traded to its lowest level since November of
2022, while December fell to its lowest nadir since December of 2022. Cotton
traders were also intent on hearing the latest from the Federal Reserve.
The Federal Reserve kept interest rates unchanged at 5.50%. The policy
committee's statement noted a "lack of further progress" in getting inflation
back down to the central bank's 2% target.
Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales report.
Last week saw sales of 177,000, up 21%, but shipments were 261,000, down 2%.
Weather-wise, the six-to-ten and the eight-to-fourteen-day forecasts call
for above to much above normal temperatures across much of the U.S. Cotton
Belt. With that, the updated U.S. Drought Monitor will have its results
released Thursday morning.
There were zero notices Wednesday against the spot May contract. That
contract expires on May 8.
This Friday the Labor Department will issue its monthly jobs report.
Expectations call for 243,000 new non-farm payrolls versus the previous number
of 303,000.
Wednesday, May cotton settled at 75.81 cents, down 2.11 cents, July was
76.51 cents, down 1.92 cents, and December finished at 75.17 cents, 1.66 cents
lower. Wednesday's estimated volume was 56,592 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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