The cotton market ended Wednesday slightly higher, as it anticipates Thursday’s export sales and the possible formation of a tropical disturbance, now lurking in the lower Caribbean. Some tracking paths have that storm moving towards the coast of Texas, putting the Rio Grande crop at risk. Growers there hold memories of Hurricane Harvey from 2017. That event really devastated that early Texas Valley Crop.
For export sales Thursday, the number to beat is 308,500 bales. That amount was the total sales, give or take, when both crop years were combined. China was the top buyer. To that end, we hear reports of how China’s state reserve auctions are selling out every day.
The U.S. dollar was lower Wednesday. Currency traders are waiting on what “interest rate word” will come from the Federal Reserve meeting being held this Thursday and Friday in Jackson Hole, Wyoming. Some analysts believe the Fed will announce a date certain as to when it will begin its tapering process. Tapering refers to the Fed’s slowing or halting the monthly purchases of U.S. debt. Currently, the Fed absorbs some $120 billion of debt every 30 days.
For Wednesday, December settled at 94.50 cents, up 0.32 cent, March ended at 93.55 cents, plus 0.37 cent and December 2022 ended at 83.75 cents, 0.15 cent higher; estimated volume was 18,411 contracts.