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DTN Closing Cotton 04/22 13:32
Cotton Suffers Correction
The cotton market saw a harsh downward selloff Wednesday
Keith Brown
DTN Contributing Cotton Analyst
After posting new highs for the move in its six-week vertical zoom, the
inevitable happened. That is, the cotton market saw a harsh downward selloff.
Some traders simply took profits, while others, fearing the upcoming potential
rain forecasts, initiated certain hedging (selling) positions. However, one
cannot say the upward trend has been broken or negated.
Thursday at 8:30 a.m. EDT, USDA will issue a new round of export sales. Last
week's tally showed net sales of 161,500 bales, off 50%, and exports were
305,000 bales, down 11% weekly.
First notice day for the May Contract is Friday, April 24. Its delivery
period runs through May 6.
Also, on Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of
Traders standings. Last week, for the first time in some two years the
managed-money funds had reversed to a net-long position. Currently, they are
net-long some 16,000 contracts.
Crude oil was markedly higher Wednesday amid claims from Iran that two ships
were seized in the Strait of Hormuz. Iran's Revolutionary Guard (IRGC) said it
seized two container ships as they tried to cross the strait "without
authorization." President Trump has prolonged the U.S. truce with Iran, citing
a "seriously fractured" political situation within Tehran. The ceasefire will
remain in place until Iranian leaders present a unified proposal to end
hostilities. In the meantime, the U.S. Navy would continue its blockade of
Iran's ports.
For Wednesday, July closed at 78.64 cents, down 222 points; December 2026
closed at 80.16 cents, minus 163 points; and March 2027 finished at 81.03
cents, 160 points lower. Wednesday's estimated volume was 87,560 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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