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DTN Closing Cotton 07/16 13:33
Cotton Sharply Lower Thursday
The cotton market was sharply lower Thursday, beaten down by poor technical
action, terrible weekly export sales, China's upcoming reserve auction, and
weather interference.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was sharply lower Thursday, beaten down by poor technical
action, terrible weekly export sales, China's upcoming reserve auction, and
weather interference.
Highlights from Thursday's export sales report include weekly sales of
34,360 bales for the current marketing year and 4,075 for the 2026-27 season,
for a total of 38,435. That amount was down from 153,393 the previous week and
the lowest since Aug. 1, 2024! Cumulative sales for 2025-26 have reached 106%
of the USDA's forecast versus a five-year average of 114% at this time in the
marketing year. Shipments totaled 214,893 bales, down from 230,056 the previous
week.
Today's retail sales showed U.S. apparel sales fell to 0.9%
month-over-month, despite an overall increase in consumer spending. That pace
made apparel one of the weaker retail categories for the month. The headline
report suggests consumers continued spending but shifted away from
discretionary categories like apparel.
China announced she will conduct an auction of cotton from her state
reserves, starting this Monday. The amount and the time of duration was not
revealed.
Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders
information. Last week saw the managed-money funds had net-bought some 7,100
positions, further enhancing their net-long carry to 39,106 contracts.
For Thursday, December closed at 79.30 cents, down 225 points; March 2027
finished at 80.70 cents, minus 223 points; and July 2027 settled at 81.24
cents, 178 points lower. Thursday's estimated volume was 55,275 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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