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DTN Morning Cotton Commentary 06/15 06:34
Cotton Continues 2-Way Trade
Monday, the cotton market is trading both sides of Friday's close as traders
weigh the possibilities of the U.S./Iran "peace deal."
Keith Brown
DTN Contributing Cotton Analyst
Monday, the cotton market is trading both sides of Friday's close as traders
weigh the possibilities of the U.S./Iran "peace deal." In addition, they will
see Monday's Crop Progress report from USDA, the Federal Reserve meeting news,
fresh export sales on Thursday, and an end-of-week holiday.
Last Friday, CFTC updated its Commitments of Traders rankings. The report's
data showed the managed-money funds were sellers per the previous Tuesday's
close. Currently (if a three-day lag is considered current), the Funds sold
some 10,000 positions, reducing their net-long carry to 42,204 contracts.
Also, on Friday past, options for the July contract expired. Spot July
contract will commence delivery on June 24, running through July 9.
Monday afternoon at 4 p.m. EDT, USDA will release its weekly Crop Progress
numbers. Last week, the agency pegged the pace of 2026 plantings at 77%, with a
good-to-excellent rating of 53%.
The Federal Reserve meets Tuesday and Wednesday to discuss and decide the
future interest rates. Under new chairmanship, the central bank is not expected
to take any action.
Supposedly a "peace deal" was struck with Iran and was announced last night.
There is to be a signing ceremony in Switzerland this Friday, June 19. The
Strait of Hormuz is allegedly open right now to all shipping traffic. Crude oil
opened $4 lower last night.
The market will be closed this Friday for the Juneteenth observance. The ICE
futures will reopen the following Sunday night at 9 p.m. EDT, but likely
certain reports will be pushed back a day.
Chart support for December cotton stands at 75.00 cents and 74.65 cents,
with resistance around 77.20 cents and 78.30 cents. This morning's estimated
volume is 10,324 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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