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DTN Closing Cotton 08/31 13:42
Cotton Sees Up, But "Squaring"
Cotton futures surged to new contract highs driven by speculation, technical
trends, and adverse growing conditions."
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was materially higher as increased speculative buying and
end-of-the-month positioning boosted the ICE Futures to new contract highs. In
addition to the stout technical uptrend, the market is benefiting from
continued adverse growing conditions, as well as large fund-style
participation.
Last Friday, the CFTC reported that the managed-money funds, per Tuesday's
close, had bought some 17,000 positions, swelling their bullish bets to 95,841
contracts. Their record is 108,778 contracts.
This afternoon at 4p.m., USDA will release its crop condition data. Last
week, the 2026 Crop was rated at 38% good-excellent, versus its 55% reading of
one year ago.
The National Hurricane Center is monitoring two storms. One is in the Gulf
of America, off the coast of Louisiana, while the other is east of the
Caribbean. The U.S. mainland has yet to see a hurricane make landfall this
season.
The latest U.S. Drought Monitor showed that 52% of the U.S. Cotton Area is
in drought, which matched the previous week's number. The reading of two weeks
ago was 40% drought.
For today, December closed at 93.14 cents, up 176 points, March 2027
finished at 95.14 cents, plus 180 points, and July 2027 settled at 95.37 cents,
170 points higher. Today's estimated volume was 66,054 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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