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DTN Closing Cotton 09/08 13:37
Cotton Market Settles Mixed Ahead of Reports
The cotton market spent Tuesday's session trading both higher and lower
versus last Friday's close, but eventually it settled mixed.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market spent Tuesday's session trading both higher and lower
versus last Friday's close, but eventually it settled mixed. Traders are
gearing up for this Friday's reports, including export sales, the monthly WASDE
and the Commitment of Traders update.
Tuesday at 4 p.m. EDT, USDA will issue its weekly Crop Progress report. Last
week, the 2026 crop was rated 38% good to excellent versus last year's reading
of 51% good to excellent.
On Thursday, new inflation data via the PPI (a measure of wholesale costs of
goods and services) will be released. It is forecasted to show a rise of 0.4%.
Then on Friday, the CPI (consumer inflation) will be issued. The recent August
jobs report, with its non-farms payrolls of 162,000, well above the estimated
forecasts of about 53,000, has traders thinking the Federal Reserve may hike
interest rates. The Federal Open Market Committee meets Sept. 15-16.
Weekly export sales are delayed until Friday due to the observance of the
Labor Day holiday. Last week, saw sales of 27,525 bales for the 2026/2027
marketing year. That amount was the lowest since cancellations at the end of
the 2023/24 marketing year.
Also on Friday, USDA will release its monthly supply-demand update. Last
month, the 2026 crop was pegged at 13.61 million bales, down 90,000 bales, with
ending stocks at 4.00 million bales versus the previous 4.10 bales. The data
will be out at noon EDT.
Lastly on Friday, at 3:30 p.m., the CFTC will update its Commitment of
Traders numbers. The last report had the managed-money funds as net buyers of
12,000 positions. Their action swelled the overall long carry to 107,936
contracts. Their record hold was 108,788 contracts.
For Tuesday, December closed at 86.32 cents, down 1 point; March 2027
finished at 88.71 cents, up 9 points; and July 2027 settled at 89.53 cents, 6
points lower. Tuesday's estimated volume was 56,988 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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