DTN Closing Cotton            04/29 13:38

   Cotton Market Stumbles Sideways to Lower

   The cotton market was moderately lower today on slow volume amid ascending 
energy markets, plus a higher U.S. dollar.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was moderately lower today on slow volume amid ascending 
energy markets, plus a higher U.S. dollar. However, specific to cotton, there 
is an increased possibility for weekend rains across west Texas and the 
Southeast. Traders are also awaiting export sales and the CFTC update for 
further price influences.

   Thursday, USDA will issue a new round of export sales. Last week, net sales 
were 120,000 bales, off 26% weekly, while shipments were 296,000 bales, down 3% 
week over week.

   On Friday, the CFTC will update its Commitment of Traders information. Last 
week, the report showed that the managed-money funds bought some 17,000 
positions, strengthening their net-long carry to 34,464 contracts.

   Headlines for a well-respected weather service suggest that rainfall will 
occur across the southwestern Plains, with 0.5 to 1.5 inches, including 
Colorado and west Texas. In fact, west and central Texas could see amounts of 2 
inches. Additional rain, from 1 to 3 inches, will likely fall into the Delta 
and the southern Tennessee River Basin from Friday into Sunday. The U.S. 
southeastern states may see partial relief from drought late this week and into 
the weekend. Still, it will take a general soaking there to break the drought.

   Today's energy inventory report from EIA saw stocks falling more than 
expected last week. U.S. crude oil exports reached 6.4 million barrels per day, 
the highest on record going back to 1991. The massive export demand has 
gasoline and heating oil stocks at their lowest levels in six years.

   For Wednesday, July closed at 79.20 cents, down 47 points; December 2026 
closed at 80.46 cents, minus 65 points; and March 2027 finished at 81.37 cents, 
64 points lower. Wednesday's estimated volume was 38,892 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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