December futures gained 219 points, settling at 69.34 cents per pound.
A weaker U.S. dollar and potential speculative short covering helped prices close above 70 cents per pound for the first time since late July. An unseasonably hot and dry forecast in Texas likely provided a slight boost to the market, which was noted in the decline of crop conditions.
A weak Export Sales Report caused prices to move lower on Thursday.
Trading volume was modest this week. The total number of open contracts increased by 3,018 to 233,027.
Minutes from the last Fed meeting signaled that central bank officials are ready to begin cutting interest rates at the September Federal Open Market Committee (FOMC) meeting.
Major stock markets returned to their highs after the FOMC meeting minutes were released but saw a decline ahead of Fed Chair Jerome Powell’s speech at the annual Fed symposium.
The labor market will be the center of attention leading to the next meeting. A downward revision to payroll numbers suggested that the cracks in the job market were more severe than initially believed. The number of jobs was revised downward by 818,000 for the 12 months ending in March. On a monthly basis, this would be roughly 174,000 jobs added per month compared to the 242,000 jobs initially reported.
The U.S. dollar was under heavy pressure and traded at its lowest level since 2024. A lower dollar benefits commodities, making it cheaper for countries to import goods.
The good to excellent condition rating for the U.S. decreased to 42%.
The crop rated good to excellent in Texas decreased by 4% this week to 29%. Oklahoma decreased by 6% to 55%, and Kansas decreased by 3% to 48%. In the U.S., 84% of cotton is setting bolls, and 19% of bolls are opening.
Harvest continues to progress in South Texas. Although it is hot, the weather has been favorable overall. The excess rain received late in the season has impacted the quality in the area.
Triple-digit temperatures and little precipitation ruled across Texas. Excessively hot and dry conditions have taken their toll on the dryland crop. The heat and lack of rainfall are set to continue.