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DTN Closing Cotton 08/21 13:38
Cotton Trades Both Sides, Closes Unchanged
The cotton market traded on both sides of Thursday's close of 88.34 cents,
before closing virtually unchanged Friday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market traded on both sides of Thursday's close of 88.34 cents,
before closing virtually unchanged Friday. Apparently, the market absorbed the
various Friday activities of hedgers, funds and speculators. Adverse growing
conditions, a weaker U.S. dollar and a strong technical uptrend are
collectively undergirding the friendly move.
Friday afternoon at 3:30 p.m. EDT, the CFTC will update its Commitment of
Traders numbers. Last week saw the managed-money funds net buy 10,500
positions, swelling their net-long carry to 72,870 contracts.
The latest U.S. Drought Monitor revealed an uptick in its weekly tally.
Currently, the U.S. cotton area shows 44% drought, up from last week's reading
of 40%.
On Monday, USDA will update its Crop Progress data. It may show further
declines in conditions. Last week, the U.S. crop was rated at 38% good to
excellent compared to the previous year's 55% good to excellent.
The 6- to 10-day weather forecast (Aug. 26-30) shows much above-normal
temperatures for the U.S. Cotton Belt. Rain wise, the Cotton Belt will see
normal chances for precipitation.
For Friday, December closed at 88.35 cents, plus 1 point; March 2027
finished at 90.15 cents, up 7 points; and July 2027 settled at 90.38 cents, 20
points higher. Friday's estimated volume was 40,210 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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