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DTN Closing Cotton 08/13 13:29
Cotton Weakens After WASDE Report
The cotton market closed lower Thursday, despite an attempt to shave off
some early morning losses.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market closed lower Thursday, despite an attempt to shave off
some early morning losses. Although Wednesday's WASDE showed a smaller number
than expected, USDA raised both planted and harvested acres. Traders will now
review the impending retail sales report and the CFTC update while keeping
vigil on the U.S.-Iran war.
Friday at 8:30 a.m. EDT, the Commerce Department will post its monthly
retail sales report. Expectations are running between roughly +0.1% to +0.3%.
For trading purposes, some traders indicate a number above +0.3% is bullish
growth, a reading of +0.1% to +0.3% would be essentially neutral, while an even
(00.00) number could slow down economic growth.
Also on Friday, the CFTC will update its Commitment of Traders numbers. Last
week saw the managed-money funds net buy 9,800 positions, swelling their
net-long carry to 62,279 contracts.
The International Energy Agency said Thursday that global oil demand was set
to fall further than previously expected this year, amid a deepening impact
from the closure of the Strait of Hormuz. In a note, the group stated that
"renewed hostilities and maritime disruptions are undermining efforts to boost
global oil supply." The agency further said that the world's current oil supply
remained 6.3 million barrels a day lower year-on-year in July.
For Thursday, December closed at 83.50 cents, down 88 points; March 2027
finished at 85.42 cents, minus 90 points; and July 2027 settled at 86.19 cents,
85 points lower. Thursday's estimated volume was 56,288 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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