| |
DTN Morning Cotton Commentary 11/12 07:25
Cotton Climbs Ahead of Reports
Cotton prices edge higher ahead of key reports, COT data release.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market's recent choppy, essentially up-and-down trend, has it
higher Thursday. Traders are awaiting a series of possibly impactful reports,
some delayed, but all released on Friday.
The Goldman Sachs Index roll continued Thursday, as the largest long-only
fund, switched positions forward from December into March. Yesterday saw
massive volume reflecting that action. The roll continues into Friday. December
Cotton will enter its delivery period on Nov. 23.
Export sales are delayed until Friday due to the observance of Veterans Day.
Highlights from last week's report had net sales of 277,522 bales for the
2026/2027 marketing year. With that, Cumulative sales have reached 51% of
USDA's forecast versus a five-year average of 58% for this point in the
marketing year. Shipments totaled 137,782 bales, which was a marketing-year low
number.
Also, the PPI (wholesale inflation) will be released Friday morning at 8:30
a.m. EST. Currently estimates are calling for month/over/month PPI to be 0.4%
versus the previous 1.3%, while the core is indicated to be 0.3% versus the
prior 0.3%.
Lastly, the Commodities Future Trade Commission (CFTC) will update its
commitment of traders (COT) data at 3:30 p.m. EST. Last week saw the managed
funds sold 3,042 positions, further reducing their net long carry to 53,148
contracts.
Crude Oil is slightly lower Thursday, as persistent geopolitical tensions in
the Middle East and Russia are being somewhat offset from rising crude output.
It was reported that OPEC+ crude production rose in October, as Saudi
Arabian pumping increased despite shipping disruptions in Hormuz.
For Thursday, close-in support for December Cotton stands at 77.90 cents and
77.05 cents, with resistance around 79.95 cents and 80.80 cents. This morning's
estimated volume is 15,750 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
(c) Copyright 2026 DTN, LLC. All rights reserved.
For more free DTN information sent right to your email each morning - click here to sign up for DTN Snapshot.
|
|
