DTN Morning Cotton Commentary          06/12 07:16

   Cotton Higher on Short-Covering Friday 

   Although Thursday's June WASDE was uninspiring, it held nothing bearish. In 
addition, the weekly export data was friendly. 

Keith Brown
DTN Contributing Cotton Analyst

   Although Thursday's June WASDE was uninspiring, it held nothing bearish. In 
addition, the weekly export data was friendly. Also, Friday morning there is 
some positive euphoria building over the possible end of the U.S./Iran War.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
numbers. Last week, the already net-long funds sold some 1,800 positions, 
reducing their bullish carry to 52,402 contracts.

   Next week, USDA will issue its Crop Progress report on Monday at 4 p.m. EDT. 
Last week's data showed the U.S. cotton crop was rated 53% good to excellent, 
while the plantings were 77% complete. That pace equaled the five-year average.

   Crude oil is lower Friday as there are high hopes for an end to the 
U.S./Iran War. Reportedly the two sides could sign a peace deal in Switzerland 
this Sunday. Some components of the deal include the lifting of oil sanctions 
by the U.S. and a commitment from Iran to reopen the Strait of Hormuz within 30 
days. The 14-point document dictates that final negotiations will not begin 
until the release of half of Iran's frozen funds, the suspension of Iran's oil 
sanctions, and the lifting of the naval blockade. Additionally, all American 
forces would need to withdraw from Iran and the U.S. and its allies would need 
to present reconstruction plans for Iran worth at least $300 billion.

   Chart support for December cotton stands at 75.00 cents and 74.50 cents, 
with resistance around 77.50 cents and 79.35 cents. Friday morning's estimated 
volume is 15,870 contracts.

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




(c) Copyright 2026 DTN, LLC. All rights reserved.