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DTN Closing Cotton 05/15 13:52
Cotton Market Closes Slighter Lower Friday
After holding a limit-down trade all morning, the cotton market finally
eased up and closed slightly lower.
Keith Brown
DTN Contributing Cotton Analyst
After holding a limit-down trade all morning, the cotton market finally
eased up and closed slightly lower. The massive selling was thought to have
been triggered primarily from the market's technical overbought condition, but
also by traders' belief the Trump/Xi trade summit didn't produce any
new-purchase commitments for U.S. agricultural products. Lastly, Thursday's
weekly exports were the lowest this year.
Today at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders data.
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 U.S. dollar was higher for the fifth consecutive session today. There
are expectations that the Federal Reserve may raise interest rates in the
coming months. The most recent CPI and PPI reports signaled renewed inflation
concerns.
Crude oil was markedly higher today after comments from President Trump that
he was "losing patience with Iran." Traders took that as an indication that the
U.S. would soon be renewing the U.S./Iran war.
The current U.S. Drought Monitor showed fractional improvement in the
current general drought now gripping the Cotton Belt. The current reading is
97% drought; previous reading 87%.
On Monday, USDA will issue its weekly crop progress data. Last week, the
2026 crop was reported at 29% planted compared to its five-year average of 28%
complete.
For Friday, July closed at 80.61 cents, off 333 points; December closed at
81.89 cents, minus 251 points; and March 2027 finished at 82.53 cents, down 253
points. Friday's estimated volume was 131,400 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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