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DTN Closing Cotton 03/06 13:34
Cotton Market Borderline Positive
The cotton market ended Friday's session somewhat higher as outside
influences remained strong.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market ended Friday's session somewhat higher as outside
influences remained strong. Naturally, the U.S. and Israel-Iran conflict was
front-and-center of all news and trading. However, Friday's jobs report was
discouraging.
Crude oil prices are on track for their biggest weekly gain since Russia's
full-scale invasion of Ukraine in early 2022. Numerically, Spot crude oil is
some $24 per barrel higher since last Friday. The spike comes as the U.S. and
Israel-Iran conflict spreads across the Middle East, bringing shipping traffic
in the Strait of Hormuz to a near standstill.
Spot March cotton saw five delivery notices Friday, bringing the total to
605 for this reporting period. Spot delivery runs through Monday, March 9.
This morning, the Labor Department issued the March jobs data. Expectations
called for the addition of 50,000 new non-farm jobs. However, the actual
reality was that the U.S. economy lost 92,000 jobs. That news initially broke
the Dow Jones and the U.S. dollar.
Today at 3:30 p.m. EST, the CFTC will update its Commitment of Traders data.
Last week, the managed-money funds had bought-in some 14,140 positions,
reducing their net-short carry to 65,368. For context, their record bearish
position stands at 81,358 contracts.
Next Tuesday, USDA will issue its March WASDE. Early expectations call for
U.S. production to be 13.90 million bales, slightly lower from February's 13.92
million bales. Exports are expected at 11.97 million bales versus 12.00
million, ending stocks are looking to be 4.36 million bales compared to 4.40
million last report.
For Friday, July closed at 66.16 cents, up 16 points; December 2026 closed
at 68.86 cents, plus 13 points; and March 2027 finished at 69.82 cents, 13
points higher. Friday's estimated volume was 60,470 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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