Like most ag markets, cotton struggled throughout the session despite a lower U.S. dollar index.
Comments:
The cotton market saw selling from both commercial and noncommercial traders Wednesday, unusual action given the lower U.S. dollar index. While the December-to-March futures spread continues to show an inverse, this was whittled back another 0.08 through the close. New-crop December is working its way toward the previous low of 66.15, with the close near session lows hinting at possible follow-through selling overnight.
General Comments:
New-crop December cotton lost 0.34 to close at 66.82 while March fell 0.26 to 66.72. New-crop December corn lost 2 cents, new-crop November soybeans rallied 1 cent, and September Chicago wheat closed 10 1/4 cents. The U.S. dollar index was 0.20 lower at 93.63. December gold was $4.50 higher at $1,284.20 while September silver was $0.241 higher and September copper gained $0.0775.
The Dow Jones Industrial Average added 50 points to 22,049. September crude oil fell $0.61 to $46.94. The September distillates (heating oil) contract was $0.0226 lower, September RBOB gasoline fell $0.0122, and September natural gas lost $0.032.
