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DTN Closing Cotton 06/05 13:35
Cotton Market Looks Unsettled
The cotton market closed lower despite an early morning recovery off of
retracement support.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market closed lower despite an early morning recovery off of
retracement support. To some degree, cotton's weakness stemmed from falling
outside markets, but a stronger U.S dollar. Today's jobs report was a stunner,
suggesting future interest rates will increase.
Today's jobs report from the Labor Department showed non-farm payrolls were
172,000 when only 85,000 were expected. The "stunner number" gives new life of
seeing the Federal Reserve increase interest rates this July.
Also later today, the CFTC will update its Commitment of Traders report.
Last week's numbers showed the occurrence of net-selling for the first time in
a dozen weeks. Managed-money funds sold some 7,800 positions, reducing their
overall net-long position to some 54,000 contracts. The data will be out at
3:30 p.m. EDT.
As a reminder, option expiration for the July contract is Friday, June 12,
while the Spot July contract commences delivery on June 24 and runs through
July 9.
Crude was lower today after Oman said a main port facility was operating
normally. There were reports from various sources claiming there were
disruptions at its loading berths. However, Oman said operations at Mina al
Fahal port were unaffected. Oman exports 800,000 to 900,000 barrels per day of
crude from the terminal.
For Friday, July closed at 73.75 cents, down 114 points; December closed at
77.48 cents, minus 101 points; and March 2027 finished at 78.80 cents, 101
points lower. Friday's estimated volume was 98,465 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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