DTN Morning Cotton Commentary

DTN Morning Cotton Commentary

After being pounded in recent days, the cotton market is fractionally up. Besides being keenly oversold, likely bearish traders are assessing their positions before pressing their “negative luck.”

Tuesday afternoon, USDA updated the condition of the U.S. 2025 crop. The data showed that 51% of the U.S. cotton crop was rated good to excellent, down from 54% the previous week, but above the five-year average of 44%. The report also showed that 28% of the crop had bolls open, up from 20% the previous week, but off from 35% below the five-year average.

We note that Indian cotton consumption has slowed. Domestic garment exporters reported a sharp decline in orders from the U.S., which accounts for nearly 29% of India’s textile exports. Last week, India extended its exemptions from import duties on cotton to the end of December in an attempt to help support manufacturers that have been hit by the U.S. tariffs.

Due to the Labor Day observance, this weekly export sales have been pushed back to Friday. The numbers will be out at 8:30 a.m. EDT.

Also on Friday, the Labor Department will issue its jobs data for August. This number will likely influence Fed opinion concerning any future reduction in U.S. interest rates.

Daily chart support for December cotton stands at 65.30 cents and 64.90 cents, with resistance at 66.75 cents and 67.40 cents. Wednesday morning’s estimated volume is 5,514 contracts.

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