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DTN Closing Cotton 04/21 13:33
Cotton Market Closes Higher Tuesday
The cotton market posted another friendly settlement today, making it nearly
1,200 points straight up from the original March 26 bullish breakout without
any correction.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market posted another friendly settlement today, making it nearly
1,200 points straight up from the original March 26 bullish breakout without
any correction. The friendly drivers are a strong technical trend, parched U.S.
fields, and certain speculators who are now bent bullish.
Weather-wise, as of last Tuesday, approximately 97% of the U.S. cotton area
is suffering drought conditions. However, some noted weather forecasters are
calling for some showers this weekend across the Southwest, including west
Texas. The U.S. Delta should start getting more timely rainfall this weekend
and into the following week. The super dry Southeast may also see some
increased rain chances.
Traders are mindful of the possible outcome of the U.S. and Iran peace
talks. Vice President JD Vance is leading the U.S. delegation, but Iranian
rhetoric has thus far been defiant. Meanwhile, the U.S. ceasefire ends on
Wednesday, and there is the threat of renewed military action against Iran.
This Thursday at 8:30 a.m. EDT, USDA will issue a new round of export sales.
Last week's tally showed net sales of 161,500 bales, off 50%, and exports were
305,000 bales, down 11% weekly.
First notice day for the May contract is April 24. Its delivery period runs
through May 6.
For Tuesday, July closed at 80.86 cents, up 82 points; December 2026 closed
at 81.79 cents, plus 103 points; and March 2027 finished at 82.63 cents, 109
points higher. Tuesday's estimated volume was71,311 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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