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DTN Closing Cotton 07/15 13:31
Cotton Trudges Higher
Based more on technicals than fundamentals, the cotton market posted a new
high for the month, albeit by a small margin.
Keith Brown
DTN Contributing Cotton Analyst
Based more on technicals than fundamentals, the cotton market posted a new
high for the month, albeit by a small margin. Traders were inspired to buy amid
a higher CPI Index, a large net-short speculative position and notions of a
better weekly export report.
Tuesday's CPI showed the 12-month inflation rate at 2.7%, in line with
expectations. Core inflation picked up 0.2% on the month with the annual rate
moving to 2.9%, which is in line with estimates. While the evidence in June was
mixed on how much influence tariffs had over prices, there were signs that the
duties are having an impact.
Wednesday, a fresh PPI (wholesale inflation) will be reported. The estimates
are monthly PPI at +0.2%, for both total and core versus +0.1% last month.
However, year-over-year PPI is expected to fall +2.5% (+2.6% last month) and
core at +2.7% (+3.0% last month). The numbers will be out at 8:30 a.m. EDT.
Then on Thursday, USDA will release a new round of export sales numbers.
Last week's data showed old crop sales of 75,000, a strong showing, but new
crop net sales were merely 81,500. Weekly shipments were 241,000 off 6% weekly.
For Tuesday, December 2025 ended at 68.59 cents, up 47 points; while March
2026 went out at 69.84 cents, plus 44 points. Tuesday's estimated volume was
39,234 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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