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DTN Closing Cotton 07/24 13:41
December Cotton Slips Below 80 Cents
After its early morning spill, replete with triple-digit losses, the cotton
market rallied to near unchanged levels before again falling with large losses
into its settlement.
Keith Brown
DTN Contributing Cotton Analyst
After its early morning spill, replete with triple-digit losses, the cotton
market rallied to near unchanged levels before again falling with large losses
into its settlement. In fact, it may be seen as psychologically negative that
December cotton closed under the 80-cent mark for the week. Yet the cotton
market, like so many others, is being heavily influenced by
headline-to-headline developments in the U.S.-Iran war.
Today at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders
information. Last week saw the managed-money funds buying in some 10,500
positions, further enhancing their net-long carry to 49,688 contracts.
This Monday, USDA will issue fresh crop condition numbers. Of late, the
good-to-excellent readings have been moving two-sided. The highest reading was
54%, followed by a couple of weeks of 44% good to excellent, but last Monday
was 45%. The number will be out at 4 p.m. EDT.
Next week the Federal Reserve will meet to discuss and decide on U.S.
interest rates. With last month's CPI and PPI data, the central bank should
leave everything on hold. However, with the escalating U.S.-Iran war, plus a
strong U.S. dollar, many are betting on an interest rate hike in September.
For Friday, December closed at 79.98 cents, off 127 points; March 2027
finished at 81.64 cents, down 119 points; and July 2027 settled at 82.74 cents,
minus 87 points. Friday's estimated volume was 58,280 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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