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DTN Closing Cotton 06/23 14:04
Cotton Market Suffered Double-Digit Losses Tuesday
The cotton market suffered double-digit losses today.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market suffered double-digit losses today. Some traders assess
that the 2026 crop is looking well and probably large, while certain
speculators seem to be exiting their original longs and are likely initiating
new short sells.
Wednesday, July cotton will enter delivery. The notice period will run until
July 7. Currently, its open interest stands at 700 contracts.
USDA will issue its weekly export sales data on Thursday at 8:30 a.m. EDT.
Last week saw current net sales of 177,000, off 15%, with shipments of 251,000,
down 16%.
On June 30, USDA will issue its Planted Acres report. Some analysts are
expecting greater 2026 acres due to the spring rally to 88.00 cents. Also worth
noting is that the March Intentions were higher than expected.
The U.S. dollar continued to move ever higher today. Traders are sensing a
more hawkish Federal Reserve for the foreseeable future. The current Fed funds
futures are pricing in an 80% chance of a rate hike by September.
The 6- to 10-day forecast (June 28-July 2) shows above-normal to much
above-normal temperatures for much of the country. Rainwise, Texas and the
northern Delta look to have slightly below-normal chances, while the Southeast
shows near-normal opportunities.
For Tuesday, July closed at 73.96 cents, off 125 points; December closed at
78.73 cents, minus 68 points; and March 2027 finished at 80.06 cents, down 71
points. Tuesday's estimated volume was 50,919 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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