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DTN Closing Cotton 01/20 13:31
Cotton Sleeps In
The market unleashed a slow and tedious session today.
Keith Brown
DTN Contributing Cotton Analyst
The market unleashed a slow and tedious session today. Despite the presence
of a significantly weaker U.S. dollar and cotton's long-term oversold
condition, little buying enthusiasm was generated.
From last week's export sales data, we note that cumulative sales for the
2025/2026 have reached 6.947 million bales, down from the 7.75 million bales
sold at this time last year, and well below the five-year average of 9.67
million bales. Sales have reached 62% of the USDA forecast versus a five-year
average of 78% for this point in the marketing year.
Some traders are wary that another shutdown of the U.S. government is
looming large. Both chambers of Congress are trying to pass certain funding
legislation, but politics have typically entered the fray.
With the observance of the Martin Luther King Day holiday on Monday, most
government reports will be delayed a day. Thus, weekly export sales will be
released this Friday at 8:30 a.m. EST.
In addition to the U.S.-Greenland-Euro fuss, the U.S. Supreme Court could
hand down a ruling at any moment on the legality of Trump's tariffs. If the
tariffs are invalidated, the Trump administration says it has other "legal
options" to keep them in place, although there will likely be ensuing financial
chaos.
For Tuesday, March 2026 went out at 64.34 cents, off 32 points; July was
67.43 cents, down 22 points; and December 2026 closed at 69.07 cents, plus 1
point. Tuesday's estimated volume was 56,942 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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