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DTN Closing Cotton 09/17 13:40
Cotton "Roils" Lower
Cotton tumbles as liquidation, weak exports and harvest pressure weigh on
futures.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was markedly lower Thursday amid fund and speculative
liquidation, as well as some "panic" fixation selling from producers. The
December Market traded to its lowest level since Aug. 7. Traders see the
current environment of the emerging harvest, poor exports, and rising interest
rates as collectively "not friendly".
Highlights from Thursday's export sales include a combined seasonal sale of
77,391. That number was slightly higher than last week's total of 76,318 bales
sold. Last year, combined sales were 186,100, while the five-year average
stands at 150,900 for this point in the season. Cumulative sales have reached
39% of the USDA's forecast versus a five-year average of 48%. Weekly Shipments
totaled 142,076 bales, down from the previous 177,774 exported.
Domestic economic numbers continue to display strength. On Wednesday, the
August retail sales jumped 1.2%, greater than expectations. Import prices rose
0.7% in August and were up 7.0% from a year earlier, adding to inflation
concerns.
Crude Oil fell Thursday as Saudi Arabia shifted some crude exports through
the Strait of Hormuz to compensate for the closure of a key pipeline. The
Saudis are using "shuttle vessels" to transport crude through Hormuz and then
load it onto tankers waiting outside the strait. That move avoids the risk of
Iranian attack while sailing into the Gulf.
December closed at 8217, minus 219 points, March 2027 finished at 8481 off
208 points, and July 2027 settled at 8625, 179 points lower Thursday. The
estimated volume was 80,969 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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