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DTN Morning Cotton Commentary 12/15 07:27
Cotton Stirs Higher Monday
The cotton market is somewhat positive Monday morning, as traders are
anticipating a slew of economic reports this week.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is somewhat positive Monday morning, as traders are
anticipating a slew of economic reports this week. In addition, the U.S. dollar
is lower, given the Dow Jones and the precious metals are substantially
stronger.
The CFTC published its latest Commitments of Traders report last Friday. Its
data showed managed-money funds bought 2,086 contracts, reducing their
net-short position to 58,243 contracts. There will be other catch-up releases
this week.
November nonfarm payrolls figures are set for release Tuesday, along with
October retail sales figures. These reports were delayed due to the U.S.
government shutdown that took place in the fall. Also, the November CPI
(consumer price index) will be published Thursday.
USDA is set to issue an export sales report Monday and Thursday. We note
that current cumulative sales for 2025-26 have reached 5.44 million bales, down
from 6.05 million at this time last year. Sales are hovering at 11-year lows.
In percentages, U.S. cotton sales have reached 49% of USDA's current season
forecast, which is below the 5-year average of 65% for this point in the
marketing year.
Daily chart support for March cotton stands at 63.70 cents and 63.00 cents,
with resistance hovering about 64.55 cents and 64.95 cents. Monday morning's
estimated opening volume is 8,313 contracts.
Keith Brown can be reached at commodityconsults@gmail.com or by calling
(229) 890-7780.
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