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DTN Closing Cotton 05/26 13:32
Cotton Market Fails to Hold Gains After Overnight Rally
From sharply higher to barely higher, the cotton market muffled a good
chance at making a price recovery today.
Keith Brown
DTN Contributing Cotton Analyst
From sharply higher to barely higher, the cotton market muffled a good
chance at making a price recovery today. Overnight, the market was inspired
higher by its oversold condition and rising crude oil, but it was not enough.
Last week, the new-crop market closed some 250 points down, however, from its
May 13 high, the December contract has tumbled some 875 points. Traders are
being pushed and pulled by ever-evolving weather forecasts, geopolitical
concerns and by a weaker exports story.
Today at 4 p.m. EDT, USDA will update the progress of the 2026 crop. Last
week, the report, representing the top 15 producing states, was 41% planted.
The five-year average is 40% complete.
Option expiration for the July contract is Friday, June 12, while the Spot
July contract commences delivery on June 24 and runs through July.
This Friday, USDA will issue a new round of export sales. Last week's
business saw improvements in the numbers, but overall, cumulative sales for
this time of year are running roughly 10% behind the five-year average.
Some weather notations include recent rains from west Texas to Georgia have
improved crop and field conditions in those areas and elsewhere. Yet,
additional moisture is expected in west Texas over the next 10 days that will
increase soil moisture. Weekend rains have improved cotton areas across the
southeastern states, but there is more rain in the forecast.
For Tuesday, July closed at 77.37 cents, down 5 points; December closed at
79.79 cents, plus 46 points; and March 2027 finished at 80.68 cents, 49 points
higher. Tuesday's estimated volume was 74,917 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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