The cotton market was obviously engaged in spreading activity Monday as spot March was demonstrably lower versus a steady-to-higher December, and a less-than-lower May contract. For the day, spot March was off 1.20 cents points, or about 1%.
Traders are awaiting this Wednesday’s monthly supply-demand update from USDA. For the most part, the market is trading sideways to lower ahead of that WASDE report. Traders are expecting slightly domestic and world carryouts.
The U.S. dollar traded both sides unchanged Monday, as the currency traders weighed the effect of last Friday’s supercharged jobs report. Last week the Labor Department reported non-farm jobs created exceeded 450,000, while expectations were calling for a mere 150,000.
This surge could play into the Fed’s ultimate decision as to when it might initiate higher interest rates. As of now the first hike is expected at the Fed’s March 16 meeting. Monday, March cotton settled at 125.57 cents, down 1.17 cents, July ended at 120.29 cents, down 0.67 cent and December finished at 104.43 cents, 0.62 cent higher; estimated volume was 67,156 contracts.
