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DTN Closing Cotton 05/28 13:37
Cotton Market Has Needed Recovery Thursday
The cotton market was finally able to dig in and trade higher today.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was finally able to dig in and trade higher today. Likely,
rising crude oil, higher grains and end-of-the-month squaring collectively gave
the market its boost. Traders will see export sales and the CFTC update ahead
of the weekend.
Friday, USDA will issue a new round of export sales. Last week's business
saw improvements in the numbers, but overall, cumulative sales for this time of
year are running roughly 10% behind the five-year average. The data is out at
8:30 a.m. EDT.
Also, on Friday, the CFTC will update its Commitment of Traders numbers.
Last week's data showed that the managed-money funds had bought-in nearly 2,500
contracts, lifting their net-long carry to 62,000-plus positions.
Option expiration for the July contract is Friday, June 12, while the Spot
July contract commences delivery on June 24 and runs through July 9.
The personal consumption expenditures price index increased a seasonally
adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%.
Economists were looking for respective readings of 0.5% and 3.8%. Excluding
food and energy, core prices rose 0.2% for the month and 3.3% for the year,
against estimates of 0.3% and 3.3%. The 12-month level for headline inflation
was the highest since May 2023. For core, the annual level was the peak since
November 2023.
For Thursday, July closed at 76.77 cents, up 61 points; December closed at
79.53 cents, plus 87 points; and March 2027 finished at 80.59 cents, 91 points
higher. Thursday's estimated volume was 72,999 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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