DTN Closing Cotton            04/30 13:50

   Cotton Immersed in Tuesday's Rout  

   The cotton market was materially lower Tuesday amid end-of-month selling, as 
well as new emerging interest rate fears. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was materially lower Tuesday amid end-of-month selling, as 
well as new emerging interest rate fears. Those financial concerns have 
resulted in every major market trading lower, with the exceptions of the U.S. 
dollar and cocoa.

   The Federal Reserve meets Tuesday but will announce its interest rate 
intentions Wednesday. Although traders are not expecting any sort of changes, 
there are heightened concerns the central bank may turn more hawkish in its 
tone regarding future interest rate moves.

   Weatherwise, the 6- to 10-day and the 8- to 14-day forecasts call for above 
to much above normal temperatures across much of the U.S. Cotton Belt. The 
weekly U.S. Drought Monitor will be updated Tuesday, but its results will not 
be released until Thursday morning.

   This Friday, the Labor Department will issue its monthly jobs report. 
Expectations call for 243,000 nonfarm jobs versus last month's amount of 
303,000. 

   Tuesday, May cotton settled at 79.30 cents, down .72 cent; July was 78.38 
cents, minus 3.14 cents; and December finished at 76.82 cents, 143 points 
lower. Tuesday's estimated volume was 59,615 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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