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DTN Closing Cotton 08/20 13:30
Cotton Market Ends Fractionally Lower Thursday
After posting its second consecutive life-of-contract high, the cotton
market ended fractionally lower Thursday.
Keith Brown
DTN Contributing Cotton Analyst
After posting its second consecutive life-of-contract high, the cotton
market ended fractionally lower Thursday. Of late, the market has been
influenced higher by adverse growing conditions, a weakening U.S. dollar and
strong Chicago grains.
Highlights from Thursday's weekly export sales include sales of 209,360
bales for the current marketing year and net sales of 64,856 bales for 2027/28
for a total of 274,216 bales. That amount was above last week's number of
145,300 bales. Cumulative sales were 36% of USDA's forecast versus a five-year
average of 43% for this point in the marketing year. Shipments totaled 222,046
bales, up from 67,923 the previous week.
In general weather news, dryland fields across West Texas have been
deteriorating recently and that trend should continue for the next 10 days. The
Delta is also unlikely to see much rain, which could lead to increases in crop
moisture stress. However, some relief from the worst conditions is expected
into the weekend across the Delta and the Southeast as the jet stream nosedives
lower out of Canada. However, Texas will continue to be stressed by the heat
and dryness.
On Friday afternoon at 3:30 p.m., 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.
Crude oil is higher Thursday after Treasury Secretary Scott Bessent said the
U.S. will impose the toughest sanctions in history against Iran. The Secretary
said that similar economic strangleholds worked in Venezuela, is working in
Cuba and will work against Iran.
For Thursday, December closed at 88.34 cents, down 1 point; March 2027
finished at 90.08 cents, minus 6 points; and July 2027 settled at 90.18 cents,
6 points lower. Thursday's estimated volume was 61,356 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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