DTN Morning Cotton Commentary          06/26 07:14

   Cotton Presses Lower

   After momentarily flirting with the upside earlier in the week, the cotton 
market is back on its bearish track. 

Keith Brown
DTN Contributing Cotton Analyst

   After momentarily flirting with the upside earlier in the week, the cotton 
market is back on its bearish track. Traders are fretting over next week's 
acres report. In addition, Thursday's exports were less than encouraging, and 
today's CFTC data may underscore the current liquidation environment.

   Spot July had 12 more deliveries for today. The notices were equally stopped 
by Macquarie and SG Americas. Total tenders stand at 545 contracts. Delivery 
period runs through July 7.

   This afternoon, at 3:30 p.m. EDT, the CFTC will update its Commitment of 
Traders data. Last Monday's delayed report showed that the managed-money funds 
sold some 7,000 contracts, reducing their net-long carry to 35,136 positions.

   On June 30, USDA will issue its Planted Acres report. Some analysts are 
expecting greater 2026 acres due to the spring rally to 88.00 cents. It is 
worth noting that the March Intentions were higher than expected. With that, 
the industry estimates peg the U.S. 2026 acreage at 9.63 million acres.

   Crude oil prices are lower today as more tankers exit the strategically 
vital Strait of Hormuz. This mass movement is easing supply concerns. However, 
a vessel was attacked in the Gulf of Oman. American officials say that Iran was 
behind an attack on a cargo ship near the coast of Oman. Tensions in the Middle 
East continue to ratchet higher with Iran disagreeing over the spending use of 
funds listed in the MOU.

   Chart support for December cotton stands at 75.00 cents and 74.60 cents, 
with resistance around 77.45 cents and 78.90 cents. Friday morning's estimated 
volume is 12,870 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com or by calling 
(229) 890-7780.




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