| |
DTN Closing Cotton 01/27 13:33
Cotton Trampolines Up
The cotton market was able to recover a sizable amount of its losses in what
can only be seen as the old classic counter-Tuesday trade.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was able to recover a sizable amount of its losses in what
can only be seen as the old classic counter-Tuesday trade. Likely, a weaker
U.S. Dollar may be buoying potential exports-sales numbers. In addition, the
cotton market became emphatically oversold, and thus today's rebound.
The U.S government may be heading for another partial shutdown on Jan. 30.
The death of another Minnesota person by federal agents this past weekend is
unifying the Democrats in Congress to halt the funding of the DHS budget.
However, most funding for Homeland Security, some $29 billion, has already been
approved.
March options will expire on Feb. 6, or in about two weeks. Traders will be
anticipating what amount of Puts and Call may expire "in-the-money".
This Thursday at 8:30 a.m. EST, USDA will issue its weekly export sales
report. The previous two releases both showed marketing-year high sales
amounts. Cumulative sales have reached 66% of the USDA forecast versus a
five-year average of 80% for this point in the marketing year.
The latest drought information shows the U.S. cotton planted area at 80%
drought (varying stages) compared to the previous reading of 83% drought. A
newer update from NOAA will be released this Thursday.
For Tuesday, March 2026 went out at 63.83 cents, 86 points higher; July was
67.01 cents, up 71 points; and December 2026 closed at 69.01 cents, plus 60
points. Tuesday's estimated volume was 72,523 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
(c) Copyright 2026 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here to sign up for DTN Snapshot.
|
|
