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DTN Closing Cotton 05/07 13:31
Cotton Market Finished With Triple-Digit Losses Thursday
With some influence from crude oil and the rainy weather, the cotton market
finished with triple-digit losses, but it didn't feel that bearish.
Keith Brown
DTN Contributing Cotton Analyst
With some influence from crude oil and the rainy weather, the cotton market
finished with triple-digit losses, but it didn't feel that bearish. Generally
speaking, the market's technicals did remain positive. However, traders also
want to see the CFTC Update, May WASDE and the outcome of the Trump/Xi meeting
to determine future prices and positions.
Highlights from today's export sales report include sales of 123,350 bales,
the lowest since Jan. 1. Today's combined seasonal sales tallied 171,749 bales,
versus the 268,626 bales sold for the previous week, and the lowest since Jan.
1. Cumulative sales have reached 96% of USDA's forecast and versus the
five-year average of 104% sold for this point in the marketing year. Today's
shipments totaled 327,531 bales, down from 384,608 the previous week.
Most weather maps had forecasted rains for the U.S. Delta and the Southeast
today, and they did not disappoint. A big line of thunderstorms did travel
across the Southeast today and will likely continue into the weekend. While not
a drought breaker, nonetheless they will ensure the planting of the 2026 crop.
Friday at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders
information. Last week, the report showed that the managed-money funds bought
some 3,800 positions, strengthening their net-long carry to 38,355 contracts.
Next week, traders will see new crop progress numbers on Monday, an updated
U.S. Drought Monitor, the May supply-demand report on Tuesday, and the Trump/Xi
trade meeting on Wednesday/Thursday.
For Thursday, July closed at 83.00 cents, down 105 points; December 2026
closed at 83.69 cents, minus 107 points; and March 2027 finished at 84.41
cents, 110 points lower. Thursday's estimated volume was 62,356 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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