DTN Morning Cotton Commentary          10/30 07:15

   Cotton: Trick or Treat? 

   Cotton Slips as Traders Rebalance Ahead of Midterms, Exports Strong


Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is slightly lower on this last trading day of October. 
Likely, some traders are balancing out their positions ahead of next week's 
crucial U.S. Midterms, while others are out doing some bargain buying. With 
that, this week's news has included interest rate "inaction" from the Federal 
Reserve and strong weekly export sales.  

   Crude Oil is higher Friday and is set for its fourth monthly gain. There was 
a recent attack on a tanker in the Hormuz, which continues to underscore the 
possible supply risks from the conflict. Additionally, there is the widespread 
feeling that the U.S. and Israel will return to full combat operations next 
week. 

   At 3:30 p.m. EDT Friday, the CFTC will report on the position of the 
managed-money funds. Last week, they were net buyers of 767 positions, which 
fractionally increased their net-long position to 66,466 contracts. The data is 
calculated from last Tuesday's settlement.

   On Monday, USDA will update the progress on the U.S. Crop. Last week saw the 
2026 crop rated at 33% good/excellent, and the harvest at 52% complete. The 
data will be released at 4 p.m. EST. 

   For Friday close-in support for December Cotton stands at 77.50 cents and 
76.95 cents, with resistance around 79.00 cents and 80.00 cents. This morning's 
estimated volume is 11,540 contracts.

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




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