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DTN Closing Cotton 10/12 13:37
Cotton Market Still Up
The cotton market was slightly higher Monday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was slightly higher Monday. Apparently, with Hurricane
Isaias now gone and its damage yet assessed, traders elected to slough off
USDA's bearish crop data. Traders are also watching the U.S. dollar and the
potential for higher interest rates.
Due to the observance of Columbus Day, USDA will release its weekly Crop
Progress report Tuesday. It is doubtful that any assessment damage stemming
from Hurricane Isaias will be documented. Various social media postings
suggested there was widespread damage to the Alabama cotton crop in particular.
This week, traders will see new CPI inflation numbers on Wednesday, while a
fresh PPI report will be out on Thursday. Their results could influence the
Federal Reserve in its deliberations whether to raise interest rates or not.
The central bank meets during the last week of October. Currently, the odds of
an increase in the Fed funds rate stand at 18%.
Also, because of Columbus Day, weekly export sales are delayed until Friday.
Highlights from last week's report included net combined seasonal sales of
221,128 bales. That amount was below the previous 241,727 bales, but was higher
than the four-week average. Cumulative sales for 2027/28 have reached 44% of
the USDA forecast versus a five-year average of 53% for this point in the
marketing year. Shipments totaled 161,588 bales, up from 149,507 bales the
previous week.
WTI crude was higher Monday after a deadly attack on Saudi Arabia's airport
in Riyadh over the weekend. Meanwhile, Ukraine claims that Russia violated the
energy ceasefire declared by President Trump. Allegedly, the Russians attacked
a gas production facility in Ukraine.
For Monday, December closed at 80.60 cents, up 6 points; March 2027 finished
at 83.81 cents, plus 22 points; and July 2027 settled at 85.93 cents, 18 points
higher. Monday's estimated volume was 45,190 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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