DTN Morning Cotton Commentary
The cotton market is quietly trying to change its flow of prices.
DTN Morning Cotton Commentary
The cotton market is quietly trying to change its flow of prices. Since its sharp collapse last Friday, the ICE futures have slowly been graduating up. Traders are seeing the active tropics as a friendly fundamental, while they await export sales figures and Friday’s CFTC update.
The National Hurricane Center is showing several tropical disturbances which potentially could develop into something more. Right now, the patterns will likely release copious amounts of rain on the Southeastern cotton crop.
On Thursday, USDA will issue a new round of export sales data. Last week saw better combined sales and higher shipments. However, the phasing out of the 2024-25 season into the 2025-26 may jumble the numbers.
This Friday, CFTC will update its Commitments of Traders data. Last week saw the managed-money funds sell a mere 482 positions, but that still increased their net-short position above the psychological level of 40,000 contracts. The report will be out at 3:30 p.m. EDT.
Daily chart support for December cotton stands at 66.50 cents and 66.00 cents, with resistance at 67.70 cents and 68.00 cents. Wednesday morning’s estimated volume is 8,510 contracts.