By Keith Brown DTN Cotton Correspondent
The cotton market was higher Friday in part on news that the Federal Reserve officially indicated it was no longer on a definite path to hike interest rates. That news sent the U.S. dollar tumbling, while crude oil and cotton rallied. Additionally, the long-awaited trade talks between the U.S. and China commence next Wednesday, and hopes are high that some positive action will occur. The two sides have till March 1 to work out a viable deal or China faces a 25% tariff on all her exports to the US.
On the government shutdown front, a compromise of sorts has been reached between the president and the democrats to reopen the government. That should be a positive development for all markets next week, especially cotton. The market has been denied such important information as weekly exports and supply/demand data for five consecutive weeks. Frankly, now is the time USDA should be tabulating acres for its March 30 Planting Intentions Report. Anyway, as we understand it, the shutdown compromise will allegedly fund the government for only three weeks.
For the week, March cotton was up 0.24 cent, on the lowest weekly volume in three weeks.
For Friday, March cotton settled at 74.13 cents, up 0.99 cent, July was 76.87 cents, up 0.96 cent and December was 74.43 cents, up 0.39 cent. Friday’s estimated volume was 25,500 contracts traded.