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DTN Closing Cotton 05/31 13:38
Cotton Awaits News, Any News
The cotton market was fretfully lower Wednesday, along with so many other
markets.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was fretfully lower Wednesday, along with so many other
markets. Traders are awaiting the outcome of the debt ceiling vote, which is
scheduled for Wednesday in Washington. The bill faces tough opposition from
both extremes of the political parties. A "no vote" could potentially send the
financial and commodities markets sharply lower, while possibly surging the
U.S. dollar higher.
USDA's weekly exports-sales are delayed until Friday morning, due to the
observance of Memorial Day holiday on Monday. Last week's sales were 131,000
bales, off 1%, while shipments were 268,000, down 19%.
Crude oil fell Wednesday amid a strong U.S. dollar and weak Chinese economic
data. China's manufacturing activity contracted faster than expected in May,
with its PMI down to 48.8 from 49.2 in April. The outcome lagged a forecast of
49.4%. Also, additional selling pressure came as the U.S. dollar traded its
highest in two months. This Friday's jobs data could further strengthen the
Greenback, as strong payroll numbers should encourage the Federal Reserve to
hike rates.
The one- to five-day forecast calls for heavy rains across the Texas
Panhandle. The six- to 10- and the eight- to 14-day outlooks hold above-normal
chances for precipitation. However, the more extended 90-day outlook shows
above-normal temperatures, with normal to below-normal rains.
Wednesday, July settled at 83.48 cents, down 0.51 cent and December 2023
ended at 79.47 cents, 0.74 cent lower. Estimated volume was 38,863 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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