DTN Morning Cotton Commentary          09/25 07:24

   Cotton Falls, Xi "Disappoints"  

   A continuation of the U.S./China trade truce is leaving the cotton markets 
lower this morning. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is moderately lower Friday morning as there was little to 
no news concerning new Chinese purchases of U.S. farm products.  Agricultural 
lobby groups and U.S. growers alike, were hoping for some sort of formal 
announcement. Instead, there was just a continuation of the U.S./China trade 
truce till January 2027.  

   Today at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
data. Last week's numbers showed that the managed-money traders were net 
sellers of 2,267 contracts. That action reduced their net long carry to 97,903. 
Their record stands at 108,788 contracts. 

   Crude Oil is lower this morning following a report that U.S. and Iranian 
negotiators in New York continue to discuss a phased deal to end the standoff 
in the Persian Gulf. However, some analysts believe the Iranians are simply 
stalling, hoping to get a favorable political outcome with the US midterm 
elections. 

   The U.S. Dollar is set for its first back-to-back weekly gains in more than 
three months. Surging treasury yields and mounting opinions for further rate 
hikes are driving the Greenback higher. An on-going bond selloff has sent U.S. 
Treasury yields to their highest levels in more than 20 years.

   For today close-in support for December Cotton stands at 8200 and 8135, with 
resistance around 8400 and 8490. This morning's estimated volume is 12,265 
contracts.

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




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