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DTN Closing Cotton 07/21 13:43
Cotton Market Closes Over 80-Cent Mark Tuesday
The cotton market was able to push up and over the 80-cent mark Tuesday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was able to push up and over the 80-cent mark Tuesday. The
basis for that feat was that some traders are becoming spooked over the
prevailing growing conditions in West Texas. That area has not received any
rain in recent days, and now newly named Tropical Storm Bertha looks like it
will bring heavy rains to the Coastal Bend area, but not West Texas. In fact,
that part of Texas will be absent of rain for the next week.
On Thursday, USDA will issue its weekly export sales report. Last week's
business was bearish in that net sales for the current season were 34,000
bales, a marketing-year-low effort. Weekly shipments were 214,900 bales and off
7% weekly.
This Friday, the Commerce Department will release its New Home Sales data at
10 a.m. EDT. This report, along with the Housing Starts report, play key roles
in domestic consumption of cotton products.
Also on Friday at 3:30 p.m. EDT, the CFTC will update its Commitment of
Traders information. Last week saw the managed-money funds buying in some
10,500 positions, further enhancing their net-long carry to 49,688 contracts.
Crude oil jumped nearly 2% Tuesday amid fresh attacks by the U.S. on Iran.
In addition, there are threats of a blockade of the Red Sea by Yemen's Houthis.
Overnight, U.S. forces bombed targets in southern Iran as punishment for the
deaths of American soldiers. Meanwhile, Iran is targeting American bases in
Bahrain, Kuwait and Jordan.
For Tuesday, December closed at 80.42 cents, up 150 points; March 2027
finished at 81.74 cents, plus 145 points; and July 2027 settled at 82.26 cents,
128 points higher. Tuesday's estimated volume was 28,096 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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