By Keith Brown, DTN Contributing Cotton Analyst
The cotton market had a mixed session Wednesday, meaning the old crop was higher, but the new crop lower. Overall, it was a very muted session as traders await Thursday’s reports from USDA. Initially the market will see weekly export sales, followed by the December crop report.
Last week’s showing for weekly sales was a very impressive 374,00- plus bales. China was the main buyer. However, shipments were a mere 71,000 bales, a five-week low. Naturally, the global shipping crisis continues to hinder the U.S. cotton exports.
The crop report is expected to show an increase in domestic ending stocks, decrease in global stocks. India has been reporting production problems due to pink bollworm infestation, while Chinese textile demand has been strong.
On the political front, the U.S. has elected to boycott Beijing’s Winter Olympics. The basis for the boycott is over human rights concerns. China responded on Tuesday, saying the decision violates the spirit of the games. China’s foreign Ministry spokesperson said, “The boycott seriously violates the principle of political neutrality of sports established by the Olympic Charter and runs counter to the Olympic motto ‘more united.'”
At any rate, Zhao added “China will respond with resolute countermeasures.” There has been no further information as to what those measures will be.
Wednesday, December settled at 111.55 cents, up 0.28 cent, March ended at 106.72 cents, up 0.35 cent and December 2022 ended at 89.65 cents, 0.13 cent lower; estimated volume was 17,741 contracts.
Source: Agfax