| |
DTN Closing Cotton 07/09 13:50
Cotton Turns Higher Before WASDE
The cotton market was all over the place today, breaking lower early, then
recovering higher later in the day.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was all over the place today, breaking lower early, then
recovering higher later in the day. Traders were first unsure of the export
report and sold into the futures, but then some two-sided buying emerged ahead
of the Friday's July WASDE.
Highlights for Thursday's export numbers showed net sales of 66,422 bales
for the 2025/26 (current) marketing year and net sales of 86,971 for 2026/27
for a total of 153,393. This amount was up from 93,118 bales of the previous
week, and the most in four weeks. Cumulative sales for 2025/2026 have reached
106% of USDA's forecast versus a five-year average of 113%.
Friday at noon EDT, USDA will issue its supply-demand update for July. An
industry estimate has the average trade guess for 2026 at 13.42 million bales,
up from 13.30 million seen in June. Domestic ending stocks are expected to be
3.77 million versus the 3.70 million in June. World-ending stocks are expected
at 71.33 million versus 71.13 million in June.
Thursday, July cotton's expired at 76.10 cents, off 5 points. That
settlement did create a switch-of-contract gap on the continuation charts.
Friday at 3:30 p.m., the CFTC will update its Commitment of Traders data.
Last week, the funds bought 6,400 positions, shrinking their net-long carry to
31,985 contracts.
The U.S. dollar was lower Thursday amid renewed hostilities between the U.S.
and Iran. With that, there are expectations the Federal Reserve could soon
raise interest rates. On Wednesday, they released minutes from the Fed's latest
meeting in June showing policymakers kept the door open to a rate rise this
year.
For Thursday, July closed at 76.16 cents, down 5 points; December closed at
80.63 cents, minus 4 points; and March 2027 finished at 81.97 cents, off 13
points. Thursday's estimated volume was 43,995 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
(c) Copyright 2026 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
|
|
