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DTN Closing Cotton 07/07 13:32
Cotton Plunges Lower
The cotton market was materially lower amid possible trade deal
disappointments, less weather threats and a strong U.S. dollar.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was materially lower amid possible trade deal
disappointments, less weather threats and a strong U.S. dollar. Traders were
hoping that President Trump's Iowa speech would offer greater clarity as to a
future trade deal with China, but it was not even mentioned. Then generally
speaking, growing conditions across the U.S. Cotton Belt look favorable.
Lastly, the strong jobs data of Thursday suggests that the Federal Reserve will
be in no hurry to lower interest rates.
Today at 3:30 p.m. EDT, the CFTC will issue its Commitment of Traders
Report. Last week, the data showed that the managed-money funds had bought in
some 2,900 positions, reducing their net-short carry to some 48,000 contracts.
Also, today at 4 p.m. EDT, USDA will update its crop progress and condition
numbers. Last week's reading showed the 2025 crop was 95% planted and was rated
at 51% good to excellent.
This Thursday at 8:30 a.m. EDT, USDA will release its weekly export sales
data. Last week's business showed sales for the expiring old crop season were
23,700, while sales for the new crop were 106,000. Weekly shipments were
255,800 bales, up 39%.
There were zero notices issued today against Spot July cotton. Thus far,
there have been a total of 226 notices tendered. Its delivery period ends on
July 9.
The 6-to-10-day weather outlook (July 12-16) shows most of the U.S. Cotton
Belt with slightly-above normal temperatures. Rain-wise, most of the U.S.
Cotton Belt looks to have slightly-above to above normal precipitation
opportunities.
For Monday, December 2025 closed at 67.89 cents, minus 57 points; while
March 2026 settled at 69.26 cents, off 52 points. Monday's estimated volume was
33,685 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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