Keith Brown DTN Contributing Cotton Analyst
July 1, 2022
The cotton market ended higher Thursday, despite the fact USDA's Planted Acres report indicated an 11% year-over-year increase. Some analysts felt with the report out of the way, traders would refocus on weather conditions. Those conditions look to be hot and dry for West Texas, the nation's largest cotton producing state.
Friday the CFTC will update the status of the managed-money funds. Potentially, they have suffered a mass liquidation, but Friday's data will be as of the past Tuesday, so the true story may not be known until next week.
The market will be closed for the Fourth of July holiday this Monday, but will reopen Monday night at its usual time.
The energy complex was sharply lower Thursday, as OPEC+ agreed to stick to its output strategy after two days of meetings. Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (bpd) in July and August.
For Thursday, July cotton settled at 103.94 cents, down 0.34 cent, December closed at 98.84 cents, up 1.36 cents and March 2023 finished at 94.78 cents, 1.38 cents higher; estimated volume was 36,620 contracts. (Source: qualitygin.com)