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DTN Closing Cotton 08/14 13:31
Cotton Ends Week on Positive Note
The cotton market was able to finish its daily session significantly higher
and its weekly trade meekly higher (up 26 points).
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was able to finish its daily session significantly higher
and its weekly trade meekly higher (up 26 points). Traders are still trying to
sort out this week's August WASDE data, which showed increased U.S. production
and planted acres, amid a lower pound-per-acre yield.
This afternoon, the CFTC will update its Commitments of Traders numbers.
Last week saw the managed-money funds net buy 9,800 positions, swelling their
net-long carry to 62,279 contracts.
Weather notes show Texas remains a huge concern. Dryland cotton in West
Texas is deteriorating and conditions are expected to worsen over the next 10
days. The Delta and the Southeast should see dry conditions across the Delta
into Alabama. Elsewhere in the Southeast, moisture is generally adequate.
The U.S. Climate Prediction Center sees a 90%+ chance of a strong El Nino
this fall/winter. That could mean drier conditions in some Southern Hemisphere
cotton-growing regions, potentially tightening global supplies later. For
China, hot-and-dry weather continues in Xinjiang, and it is reducing the number
of bolls per plant.
On Monday at 4 p.m. EDT, USDA will update the 2026 crop in its Weekly Crop
Progress and Conditions report. Recent data has the crop rated at 40%
good/excellent versus 42% last week, and 53% one year ago.
For Friday, December closed at 84.80 cents, up 130 points; March 2027
finished at 86.68 cents, plus 126 points; and July 2027 settled at 87.35 cents,
116 points lower. Friday's estimated volume was 36,423 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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