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DTN Closing Cotton 10/09 13:52
Bearish Report but Hurricane Worries
Cotton rebounds despite bearish USDA WASDE report as Hurricane Isaias
concerns grow.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market fell into negative territory after the release of USDA's
October WASDE, but then somewhat recovered as worries over Hurricane Isaias
intensified. Also, the energies were sharply lower.
USDA issued its October WASDE and its data was bearish against expectations.
Domestic production and ending stocks forecasts for 2026/27 both increased from
their September estimates versus expectations for a decline. World production
and ending stocks also increased counter to expectations. The report placed US
2026/27 cotton production at 13.44 million bales versus the average trade guess
of 12.97 million bales.
At 3:30 p.m. EDT Friday, the CFTC will update its C-O-T numbers. Last week,
the managed-money funds net sold some 7000 positions reducing their net-long
carry to 74,500 contracts.
According to the National Hurricane Center, Isaias is now a Category 3 storm
with maximum sustained winds of 120 mph. Forecasters now consider it a "major
hurricane." As of 1 p.m. EDT Friday, the storm was located about 160 miles
south of Pensacola, Fla., and roughly 130 miles southeast of the mouth of the
Mississippi. It is expected to approach the northern Gulf Coast Friday
afternoon and make landfall near the Alabama-Florida state line tonight.
For Friday, December closed at 80.54 cents, up 60 points; March 2027
finished at 83.59 cents, plus 56 points; and July 2027 settled at 85.75 cents,
58 points higher. Friday's estimated volume was 66,390 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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