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DTN Closing Cotton 10/26 13:32
Cotton Lower On "Lula Fever"
Cotton Falls as Lula Win, Export Outlook, Fed Uncertainty Weigh
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was materially lower Monday, along with many other outside
markets, upon the socialist Brazilian President Lula de Silva winning a fourth
term. As a result, the Brazilian Real sharply declined, inferring the
facilitation of increased exports of SoAm cotton and grains.
At 4 p.m. EDT Monday, USDA will issue its crop progress report. Last week,
the U.S. Crop was rated 35% good/excellent and was pegged at 41% harvested.
On Tuesday and Wednesday, the Federal Reserve meets to discuss the U.S.
economy. Recent reports are showing higher concentrations of inflation thus the
central bank may feel pressed to raise rates. However, most analysts feel that
the central bank will wait until December to do so.
Crude Oil reflected a two-sided trade Monday. Traders are weighing the price
effect a joint U.S./Israeli attack on Iran would have on the energy complex. In
addition, the U.S. Strategic Petroleum Reserve is being reported at its lowest
level since 1982. Still, representatives from Saudi Arabia, Trkiye, and
Pakistan are meeting with Iranian President Masoud Pezeshkian and National
Security Council chief Mohsen Rezaei in an effort to de-escalate tensions.
For Monday, December closed at 79.06 cents, down 114 points, March 2027
finished at 82.86 cents, minus 108 points, and July 2027 settled at 85.01
cents, 108 points lower. Monday's estimated volume was 64,563 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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