DTN Morning Cotton Commentary

DTN Morning Cotton Commentary

The cotton market remains in a narrow trading environment, characterized by tight ranges and sporadic volumes. Although the market is ridiculously oversold, traders are concerned with its poor demand, general economic disinterest and its impending harvest.

USDA just released its weekly export sales report with the following numbers:

“Net sales of Upland totaling 245,000 RB for 2025/2026 primarily for Vietnam (109,700 RB, including 4,300 RB switched from Nicaragua, 1,300 RB switched from Thailand, and decreases of 100 RB), India (53,800 RB), China (35,200 RB), Bangladesh (31,900 RB), and Mexico (6,900 RB), were offset by reductions for Nicaragua (4,300 RB).

“Exports of 154,700 RB were primarily to Vietnam (82,800 RB), Pakistan (17,500 RB), Mexico (11,000 RB), Honduras (6,600 RB), and India (6,300 RB).

“Net sales of Pima totaling 1,600 RB for 2025/2026 primarily for India (1,100 RB), Peru (400 RB), and Indonesia (100 RB), were offset by reductions for Switzerland (200 RB).

“Exports of 4,400 RB were primarily to India (2,500 RB), Egypt (700 RB), Peru (500 RB), Indonesia (300 RB), and Slovenia (100 RB).”

The Labor Department released its jobs data for August just now. Non-farm payrolls were expected to see a gain of 75,000 jobs, after last month’s controversial 73,000 job gain. Friday’s actual number was 22,000 new jobs.

The National Hurricane Center is tracking a tropical “swirl” in the lower Atlantic Basin. Right now, the disturbance is tracking west toward the lower Caribbean.

Daily chart support for December cotton stands at 65.75 cents and 65.00 cents, with resistance at 66.60 cents and 67.25 cents. Friday morning’s estimated volume is 4,285 contracts.

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