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DTN Closing Cotton 01/28 13:36
Cotton Waffles Lower
The cotton market traded both sides of its close of Tuesday, before settling
slightly down.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market traded both sides of its close of Tuesday, before settling
slightly down. The market eventually ignored the outside markets, which were
stronger, as the precious metals, energies, and grains were all materially
higher, with gold being the overarching bullish driver.
The Federal Reserve announced no movement on U.S. interest rates at its 2
p.m. EST announcement, although the FMOC sees improving economic strength. The
Trump administration has been pushing the central bank to lower rates for all
aspects of the U.S. economy, especially the refinancing of its $37 trillion,
and growing, debt.
The U.S. government may be heading for another partial shutdown on Jan. 30.
The death of another Minnesota person by federal agents this past weekend is
unifying the Democrats in Congress to halt the funding of the DHS budget.
However, most funding for Homeland Security, some $29 billion, has already been
approved.
March options will expire on Feb. 6, or in about two weeks. Traders will be
anticipating what amount of Puts and Call may expire "in-the-money".
Thursday at 8:30 a.m. EST, USDA will issue its weekly export sales report.
The previous two releases both showed marketing-year high sales. Cumulative
sales have reached 66% of the USDA forecast versus a five-year average of 80%
for this point in the marketing year.
Also on Thursday, Q4 GDP, Factory Orders and Durable Goods will be released.
Expectations call for improvements in all their data points.
The latest drought information shows the U.S. cotton planted area at 80%
drought (varying stages) compared to the previous reading of 83% drought. A
newer update from NOAA will be released this Thursday.
For Wednesday, March 2026 went out at 63.73 cents, 10 points lower; July was
67.10 cents, up 9 points; and December 2026 closed at 69.01 cents, unchanged.
Wednesday's estimated volume was 66,854 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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