DTN Morning Cotton Commentary          08/06 07:42

   Cotton Market Holds Steady Thursday

   After several tumultuous sessions that resulted in positive action, the 
overnight cotton market is essentially steady Thursday.

Keith Brown
DTN Contributing Cotton Analyst

   After several tumultuous sessions that resulted in positive action, the 
overnight cotton market is essentially steady Thursday. Traders are evaluating 
Thursday's export sales and awaiting Friday's CFTC update, along with any 
pertinent news out of the Middle East.

   USDA just issued its weekly exports sales data with the following numbers:

   "Net sales reductions of Upland totaling 55,900 RB for 2025/2026 -- a 
marketing-year low -- were down noticeably from the previous week and from the 
prior 4-week average. Increases reported for China (4,100 RB, including 2,400 
RB switched from Hong Kong, 1,900 RB switched from Vietnam, and decreases of 
200 RB), Pakistan (2,200 RB), Nicaragua (900 RB), and Mexico (100 RB), were 
more than offset by reductions primarily for Turkey (33,100 RB), India (9,300 
RB), South Korea (4,900 RB), Indonesia (4,200 RB), and Vietnam (4,000 RB). Net 
sales of 242,100 RB for 2026/2027 primarily for Vietnam (132,400 RB), Turkey 
(41,600 RB), Honduras (20,500 RB), India (18,800 RB), and Pakistan (15,100 RB), 
were offset by reductions for Nicaragua (1,700 RB), Mexico (1,100 RB), and 
South Korea (400 RB). Exports of 222,800 RB were down 5 percent from the 
previous week and 7 percent from the prior 4-week average. The destinations 
were primarily to Vietnam (88,900 RB), Pakistan (35,500 RB), Turkey (19,500 
RB), India (18,000 RB), and Bangladesh (12,700 RB). Total net sales reductions 
of Pima totaling 400 RB for 2025/2026 -- a marketing-year low -- were down 
noticeably from the previous week and from the prior 4-week average. Decreases 
were for India. Net sales of 8,300 RB for 2026/2027 were reported for India 
(7,200 RB), Thailand (700 RB), Indonesia (200 RB), Japan (100 RB), and Mexico 
(100 RB). Exports of 5,000 RB were up 11 percent from the previous week, but 
down 35 percent from the prior 4-week average. The destinations were primarily 
to India (3,800 RB), China (700 RB), Thailand (200 RB), Pakistan (100 RB), and 
Indonesia (100 RB)."

   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.

   Crude oil is steady to higher Thursday morning amid caution of whether talks 
between Iran and Oman will restore the free flowing of the Strait of Hormuz. 
Supposedly, Iran and Oman have reached an understanding on the geographic 
coordinates for a shipping route through the Strait of Hormuz.

   Chart support for December cotton stands at 81.85 cents and 81.10 cents, 
with resistance around 84.20 cents and 85.00 cents. Thursday morning's 
estimated volume is 9,757 contracts.

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




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