The cotton market shot to new highs and, in the case of the March, new contract highs. Traders continued to roll positions from Spot December into the deferred March contract as part of their preparations for December’s impending delivery.
Also, there was a news story making the rounds suggesting India may curtail a large percentage of her exports. That country’s cotton production has been reeling this season from adverse weather events, as well as pink bollworm infestations. It was thought India might fill the void caused by the international boycott of China’s Xinjiang cotton, but now that role may be in question.
Thursday at 8:30 a.m. EST, USDA will update its weekly export sales data. Last week saw current season sales at 128,000 running bales, which was down nearly 9% from the previous week’s business. China has been the top buyer of U.S. cotton for several weeks.
Weather-wise, the 6- to 10-day forecast shows normal temperatures for West Texas, but below-normal temperatures for the Delta and the Southeast. However, Texas, the Delta and the Southeast have the potential for above-normal rainfall.
Wednesday, December settled at 119.70 up 1.72 cents, March ended at 116.92 plus 1.79 cents, and December 2022 ended at 91.93, .05 cent higher. Wednesday’s estimated volume was 41,316 contracts.