DTN Morning Cotton Commentary          06/24 07:14

   Cotton Market Nestles Lower

   The cotton market is gently lowering itself in price.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is gently lowering itself in price. Coming into Wednesday, 
the December contract is already off 150 points for the week. Traders are 
weighing global geopolitical concerns, and of course, next week's acres report 
for squaring their positions.

   Today kicks off the notice for the July contracts. With that, there were 527 
tenders issued, of which 493 contracts originated with Term/Allenberg. 
Originally, given the wide differences between Spot July and the deferred 
contracts, it was thought deliveries would either be light or non-existent, yet 
here they are. Stoppers included Macquarie and SG Americas (Bunge?). The 
balance of notices comes from Wells Fargo.

   USDA will issue its weekly export sales data on Thursday at 8:30 a.m. EDT. 
Last week saw current year net sales of 177,000, off 15%, with shipments of 
251,000, down 16%.

   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.

   The U.S. dollar continued to move higher. Traders and investors are now 
resolved that the current trading environment is one of rising interest rates. 
Thus, the precious metals, as well as the energy complex, are collectively 
lower. The Fed funds futures are pricing in an 80% chance of a rate hike by 
September.

   Chart support for December cotton stands at 77.25 cents and 76.75 cents, 
with resistance around 79.50 cents and 80.50 cents. Wednesday morning's 
estimated volume is 7,850 contracts.

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




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