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DTN Closing Cotton 10/27 13:44
Cotton Lacks Good Footing
Cotton extends losses ahead of the Fed decision, export sales data.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market continues its downward trek Tuesday, now posting four
consecutive lower sessions. The market is wilting under harvest pressure and a
strong U.S. Dollar. Traders are now waiting on the outcome of this week's Fed
meetings, Thursday's export sales, and whatever end-of-the-month squaring
emerges.
On Wednesday, the Federal Reserve will announce its policy on interest rates
at 2 p.m. EDT. Despite the presence of higher concentrations of inflation most
analysts feel that the central bank will wait till December to hike rates.
Beginning this December, the CFTC will initiate a twice-weekly release of
its highly watched Commitment of Trade (COT) Report. The transition aims to
significantly trim the time lag between data collection and public reporting.
This move is obviously different to the traditional Tuesday data collected and
released the following Friday at 3:30 p.m. EDT
This Thursday, the USDA will issue fresh export-sales. Highlights from that
report revealed total seasonal sales of 199,630 bales, higher than the 154,074
bale number of the previous week. Cumulative sales had reached 47% of USDA's
forecast versus a five-year average of 55%.
For Tuesday, December closed at 78.06 cents, down 100 points, March 2027
finished at 81.82 cents, minus 104 points, and July 2027 settled at 83.89
cents, 112 points lower. Tuesday's estimated volume was 64,652 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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