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DTN Closing Cotton 05/13 13:35
Cotton Picked Itself Up and Forged Ahead After Tuesday Slip
After slipping lower Tuesday, the cotton market picked itself up and forged
ahead today.
Keith Brown
DTN Contributing Cotton Analyst
After slipping lower Tuesday, the cotton market picked itself up and forged
ahead today. In its early push, December cotton made a new contract high of
88.08 cents, but toward the end of the session, the rally greatly fizzled.
Apparently, traders will be eyeing export sales, weather forecasts, Trump/Xi
meeting and Friday's CFTC update for further bullish evidence to justify a
higher market.
Thursday at 8:30 a.m. EDT, USDA will release its latest export sales
numbers. Last week saw net sales of 123,000 bales, off some 24% weekly and
shipments of 327,000 bales, down 15% week over week.
The Trump/Xi trade meeting is taking place in Beijing with much pomp and
ceremony. The two sides have much to discuss including tariffs, Taiwan, Iran,
rare earths and U.S. agricultural purchases.
Also on Friday, the CFTC will update its Commitment of Traders numbers. Last
week, the managed-money funds bought some 12,000 positions, lifting their
net-long carry to 51,184 contracts. The all-time record bullish record stands
at 108,788 contracts.
The 6- to 10-day forecast (May 18-24) shows above to much-above temperatures
for Texas and the Southeast. Rainwise, Texas has above-normal chances, with the
rest of the Cotton Belt showing only slightly above-normal opportunities.
For Wednesday, July closed at 86.86 cents, up 49 points; December closed at
86.49 cents, plus 18; and March 2027 finished at 87.03 cents, 25 points
positive. Wednesday's estimated volume was 81,518 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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