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DTN Morning Cotton Commentary 07/08 06:36
Cotton Inches Up
The cotton market is gingerly higher this morning on a counter-Tuesday move.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is gingerly higher this morning on a counter-Tuesday move.
On Monday, the market pummeled by a weaker Dow Jones, a stronger U.S. Dollar,
declining Chicago grains and stagnant international trade deals.
Monday, the CFTC issued its Commitment of Traders Report. Last week, the
data showed that the managed-money funds had bought in some 2,900 positions,
reducing their net-short carry to some 48,000 contracts. However, per Monday's
numbers, those same managed-money funds bought-in some 5,175 positions,
reducing their net-short carry to 42,910 contracts.
Also, Monday afternoon, USDA released its weekly crop condition numbers.
Last week's reading showed the 2025 crop was 95% planted and was rated at 51%
good to excellent. This week's report showed that 52% of the crop was rated
good to excellent. The five-year average for this date is 45% good to
excellent. Texas and the Southeastern states improved, while some of the Delta
states deteriorated.
This Thursday at 8:30 a.m. EDT, USDA will release its weekly export sales
data. Last week's business showed sales for the expiring old crop season were
23,700, while sales for the new crop were 106,000. Weekly shipments were
255,800 bales, up 39%.
Spot July cotton will expire on Wednesday on the close of trading. Thus far,
there have been a total of 226 notices tendered
Daily chart support for December cotton stands at 67.50 cents and 67.10
cents, with resistance at 68.50 cents and 69.00 cents. Tuesday morning's
estimated volume is 4,910 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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