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DTN Closing Cotton 07/01 13:42
Cotton Lower, Pares Losses
The cotton market threatened to trade limit down early in Friday's session,
but holiday squaring cut the market's steep decline.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market threatened to trade limit down early in Friday's session,
but holiday squaring cut the market's steep decline. No doubt the related
activity of bottom-pickers and short-covering brought prices up.
Friday afternoon, the CFTC will update its commitment of traders report.
Participants will be curious to see what open interest damage has been done to
the once highly bullish managed-money funds. Potentially, that group suffered a
huge reduction in their net long position during the market's six-day mass
liquidation.
Weather-wise, the six- to 10-day outlook indicates above-normal temperatures
across much of the Cotton Belt. Texas is expected to see below-normal rainfall,
while the Southeast and the Delta are expecting normal to above-normal for the
Delta.
The market will be closed Monday in observance of Independence Day, but will
resume trading Monday night.
July cotton remains in delivery until its expiration on July 7. It still
shows 185 contracts in its open interest.
For the week, December is down 0.57 cent, down 1.37 cents on the month, but
up 4.83 cents on the year.
For Friday, July Cotton settled at 103.68 cents, down 0.26 cent, December
closed at 97.48 cents, down 1.36 cents and March 2023 finished at 93.37 cents,
1.41 cents lower; estimated volume was 35,761 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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