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DTN Closing Cotton 07/14 13:43
Cotton Sees Technical Stability
Ahead of Friday's World Agricultural Supply and Demand Estimates update, the
cotton market was somewhat "oversold". Thus, once the data was released, and
despite a larger crop, a "buy-the-rumor-sell-the-news" among traders helped to
jump prices higher today.
Keith Brown
DTN Contributing Cotton Analyst
Ahead of Friday's World Agricultural Supply and Demand Estimates update, the
cotton market was somewhat "oversold". Thus, once the data was released, and
despite a larger crop, a "buy-the-rumor-sell-the-news" among traders helped to
jump prices higher today. Moreover, there are several economic reports due this
week that will likely have their impact.
This afternoon at 4 p.m. EDT, USDA will issue its weekly crop condition
report. Last week's rating showed the crop at 52% good/excellent while one year
ago the crop was 45% good/excellent.
Tomorrow, a new Consumer Price Index (CPI) (consumer inflation) will be
issued at 8:30 a.m. EDT. The CPI month-over-month (MoM) is expected at +0.3%
(+0.1% last month) and core CPI MoM is also expected at +03% (+0.1% last
month). CPI year-over-year (YoY) is expected at +2.6% (+2.4% last month) and
core CPI YOY is expected at +2.9% (+2.8% last month).
On Wednesday, a fresh Producer Price Index (PPI) (wholesale inflation) will
be reported. The estimates are monthly PPI at +0.2% for both total and core,
versus +0.1% last month. However, YOY PPI is expected at +2.5% (+2.6% last
month) and core at +2.7% (+3.0% last month). The numbers will be out at 8:30
a.m. EDT.
Then on Thursday, USDA will release a new round of exports-sales numbers.
From last week's data, we note that cumulative U.S. cotton sales for both new
and old crops are near their lowest levels in a decade.
For Monday, December 2025 ended at 6809, up 67 points, while March 2026 went
out at 6936, plus 61 points. Today's estimated volume was 28,671 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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