DTN Morning Cotton Commentary          08/31 07:15

   Cotton Up at Month's End

   The cotton market is sharply higher Monday, and in fact has posted new 
contract highs. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is sharply higher Monday, and in fact has posted new 
contract highs. The push is being driven by month-end positioning, a strong 
technical trend and possible Gulf of Mexico (Gulf of America) storms.

   Last Friday, the CFTC issued its Commitment of Traders report. The numbers 
indicated that the managed-money funds net bought some 17,000 positions, per 
last Tuesday, swelling their bullish net carry to 95,841 contracts. Their 
record is 108,778 contracts.

   Monday afternoon at 4 p.m. EDT, USDA will release its crop condition data. 
Last week, the 2026 crop was rated at 38% good to excellent versus its 55% 
reading the previous year.

   The National Hurricane Center shows two storms of varying strengths. One is 
in the Gulf of Mexico (Gulf of America) while the other is east of the 
Caribbean. Traders are monitoring their development.

   Crude oil is sharply higher Monday morning. In fact, in early trading, it 
was up 3%. Over the weekend, new fighting erupted between the U.S. and Iran, 
with the U.S. striking certain missile launches on Larak Island. Iran responded 
with launches against U.S. forces in Jordan.

   For Monday, support for December cotton stands at 90.40 cents and 89.90 
cents, with resistance around 94.00 cents and 94.50 cents. Monday morning's 
estimated volume is 18,858 contracts.

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




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