| |
DTN Morning Cotton Commentary 09/16 07:12
Cotton Remains Dormant
The cotton market continues to trade a very tedious and narrow path.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market continues to trade a very tedious and narrow path.
Monday's high-low range was less than 50 points. The perceived outlook is that
the 2025 crop will be large, while demand is skewed. Traders are watching for
any alteration such as any adverse late weather event or a late-year trade deal
with China.
On Monday, USDA issued its weekly Crop Progress report. The data showed that
52% of the crop was rated good to excellent. That grade was slightly down from
the previous reading of 54%, but up from 39% a year ago and above the five-year
average for this date at 42%. Texas is the only state among the top seven
producers that is better than average. The report also showed that 50% of the
U.S. crop had bolls open, just below the five-year average for this date at 49%.
The Federal Reserve is meeting today and will announce on Wednesday its
latest position on U.S. interest rates. Odds are calling for a quarter-point
cut, but some could see a half-point reduction. However, President Donald Trump
calls for aggressive monetary easing and wants the central bank to enact a
"bigger" cut, pointing to the flaying housing market.
Daily chart support for December cotton stands at 66.30 cents and 65.95
cents, with resistance at 67.20 cents and 67.60 cents. Tuesday morning's
estimated volume is 7,668 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
(c) Copyright 2025 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.
|
|
