DTN Morning Cotton Commentary          10/19 07:21

   Cotton Higher, Dollar Lower

   Cotton gains on weaker dollar and lower oil prices. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is somewhat higher Monday, as the U.S. Dollar and Crude 
Oil are both lower. There were no new weekend flare-ups in the Middle East and 
traders are anticipating the Federal Reserve monthly meeting next week. 

   Last Friday afternoon, the CFTC issued its weekly Commitment of Traders 
(COT) update. Its data showed that the managed-money funds had bought some 1800 
positions, increasing their net-long carry to 65,699 contracts.  

   At 4 p.m. Monday, the USDA will release its Crop Progress data. The previous 
report had the U.S. crop rated 34% good/excellent, a slight uptick in its 
condition, while harvest was pegged at 31% versus a five-year average of being 
29% complete.

   Crude Oil is lower Monday amid the possibility of greater Russian supplies 
hitting the market. Over The weekend, President Trump invoked national-interest 
laws to suspend new duties on Russian energy buyers.

   This Thursday, the USDA will issue its weekly exports-sales report. 
Highlights from last week's data saw combined seasonal net sales of 154,074 
bales, which was below the 221,128 bales of last week. Cumulative sales for 
2026/2027 have reached 45% of USDA's forecast versus a five-year average of 54% 
for this point in the marketing year. 

   For Monday, close-in support for December Cotton stands at 79.60 cents and 
79.10 cents, with resistance around 81.00 cents and 82.00 cents. Monday 
morning's estimated volume is 7,152 contracts.

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




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