DTN Morning Cotton Commentary          08/05 07:16

   Cotton Nearly Forges a High

   Overnight, the cotton market came within two ticks of eclipsing the July 
high of 82.96. 

Keith Brown
DTN Contributing Cotton Analyst

   Overnight, the cotton market came within two ticks of eclipsing the July 
high of 82.96. Besides adhering to the upward technical trend, traders remain 
concerned with current growing conditions. In addition, they were also 
encouraged as the U.S. dollar posted its fifth consecutive lower settlement.

   Thursday, USDA will issue fresh export sales data. Last week saw net sales 
for the 2026/2027 season of 352,400 bales. The top buyers included Vietnam 
(245,500), India (42,200), and Pakistan (18,400). Shipments tallied 233,800 
bales, which was down 15% weekly. The primary destinations were Vietnam 
(78,600), Pakistan (49,400), Indonesia (18,000), Turkey (12,700), and Mexico 
(12,400). The data will be out at 8:30 a.m. EDT.

   Crude oil prices are somewhat rebounding Wednesday morning after the 
Iranian-backed Houthis reportedly hit a Saudi Arabian tanker in the Red Sea. 
The reported strike dented hopes of a potential ceasefire agreement, which rose 
this week following comments by Treasury Secretary Scott Bessent. WTI was up 50 
cents, while Brent traded more than 1% higher.

   This Friday at 3:30 p.m. EDT, the CFTC will update its Commitment-of-Traders 
data. The previous report showed that the managed-money funds net sold some 700 
positions, slightly reducing their net-long carry to 52,410 contracts.

   Chart support for December cotton stands at 81.00 cents and 80.20 cents, 
with resistance around 83.20 cents and 84.00 cents. Wednesday morning's 
estimated volume is 13,700 contracts.

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




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