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DTN Closing Cotton 08/18 13:32
Cotton Hits New High Before Turning Lower
The cotton market was a touch lower Tuesday, but not before it posted a new
high for the move to 86.33 cents.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was a touch lower Tuesday, but not before it posted a new
high for the move to 86.33 cents. Perceptions of worsening weather encouraged
all sorts of traders to buy into the fray, but stronger commercial selling
(farmer fixations) kept up the bearish pressure.
The U.S. 30-year Treasury bond yield hit a new 19-year high on Tuesday as
worries about the domestic fiscal situation plus concerns over inflation
persist. The U.S. fiscal deficit in July saw its highest monthly total since
March 2021, while the annual inflation rate is still well above the Federal
Reserve's 2% target as the Middle East conflict sends oil prices higher.
Government borrowing costs across the globe hit multi-decade highs as well.
This Thursday, USDA will issue its weekly export sales. Previously, sales
were 126,000 bales, while shipments were 146,000 bales. Both categories were
below expectations. The number will be out at 8:30 a.m. EDT.
Crude oil was higher Tuesday as prospects for a U.S.-Iran peace deal
continued to fade. Tehran has said it will take a more offensive stance, and
Washington has ruled out extending a ceasefire deal. The latest peace talks and
the resumption of oil tanker traffic through the strategic Strait of Hormuz
appear to have halted.
For Tuesday, December closed at 85.41 cents, down 7 points; March 2027
finished at 87.21 cents, minus 7 points; and July 2027 settled at 87.81 cents,
8 points higher. Tuesday's estimated volume was 36,827 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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