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DTN Closing Cotton 03/03 13:35
Cotton Struggles for Direction
Amid wild outside volatility, with certain markets up and others down, the
cotton market essentially remained in limbo today.
Keith Brown
DTN Contributing Cotton Analyst
Amid wild outside volatility, with certain markets up and others down, the
cotton market essentially remained in limbo today. Traders are still looking to
the U.S./China trade meeting late this month for price inspiration.
The U.S. dollar posted new highs again today, as its flight-to-quality
"haven" took on more dramatics. Currently, the Greenback has posted a new high
for the year.
Spot March cotton saw 96 delivery notices today. Thus far, some 600 delivery
tenders have been issued. The delivery period runs through Monday, March 9.
Crude oil was sharply higher today, as the U.S. and Israel-Iran conflict
with Iran intensifies. Shipping traffic via the Strait of Hormuz is massively
reduced as insurers are increasing and/or canceling their policies. One fifth
of the world's oil and liquefied natural gas typically passes through the
waterway.
On Thursday, USDA will issue its weekly export sales report. Last week saw
net sales of 253,000 bales, off 46% with shipments of 193,000 bales, a 12%
increase. The numbers are out at 8:30 a.m. EST.
The U.S. campaign against Iran may be putting Chinese leader Xi Jinping on
the back foot. Initially, the tariff ruling of the U.S. Supreme Court somewhat
played into Beijing's hands, but now, with Venezuela and Iran as major oil
suppliers to China and more or less under U.S. control, China may be more
amenable to a deal.
For Tuesday, July closed at 65.95 cents, down 48 points; December 2026
closed at 68.51 cents, minus 41 points; and March 2027 finished at 69.49 cents,
45 points lower. Tuesday's estimated volume was 76,920 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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