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DTN Closing Cotton 04/25 13:30
Cotton Market Slows Its Pace
After a strong snap-up, the cotton market eased off amid some position
squaring ahead of the weekend.
Keith Brown
DTN Contributing Cotton Analyst
After a strong snap-up, the cotton market eased off amid some position
squaring ahead of the weekend. There were little outside influences on the
"fiber market" as the Dow Jones, the energies and the Chicago Grains were
fairly muted in their trading.
Today at 3:30 p.m. EDT, the CFTC will update its Commitment-of-Traders
information. Last week, the managed-money funds bought in over 13,000 contracts
per last Tuesday's close reducing their bearish carry to 42,418 contracts. At
their peak bearish position, the funds were net short 79,957 contracts.
On Monday at 4 p.m. EDT, USDA will issue its weekly crop progress report.
Last week's summary had the 2025 crop at 11% planted in line with the five-year
average.
The eight-to-fourteen-day forecast (May 2nd to May 8th) indicates
below-normal temperatures for West Texas, near-normal for the Delta, and
above-normal for the Southeast. Rain wise, West Texas will have slightly
above-normal chances, while the Delta should experience normal to below-normal
odds, and the Southeast, slightly above-normal opportunities.
The U.S. dollar posted its first weekly gain since mid-March today. It was
higher as China granted some tariff exemptions for certain U.S. imports. That
action raised hopes that the trade war between the world's two largest
economies may be closer to a resolution. Earlier, the dollar had been whipsawed
by conflicting news in the relationship of Washington and Beijing.
For Friday, May Cotton settled at 6685, down 45, July Cotton ended at 6880,
minus 37, and December finished at 6997, 40 points lower. Today's estimated
volume was 35,260 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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