DTN Closing Cotton            04/22 13:32

   Cotton Suffers Correction 

   The cotton market saw a harsh downward selloff Wednesday

Keith Brown
DTN Contributing Cotton Analyst

   After posting new highs for the move in its six-week vertical zoom, the 
inevitable happened. That is, the cotton market saw a harsh downward selloff. 
Some traders simply took profits, while others, fearing the upcoming potential 
rain forecasts, initiated certain hedging (selling) positions. However, one 
cannot say the upward trend has been broken or negated.

   Thursday at 8:30 a.m. EDT, USDA will issue a new round of export sales. Last 
week's tally showed net sales of 161,500 bales, off 50%, and exports were 
305,000 bales, down 11% weekly.

   First notice day for the May Contract is Friday, April 24. Its delivery 
period runs through May 6.

   Also, on Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of 
Traders standings. Last week, for the first time in some two years the 
managed-money funds had reversed to a net-long position. Currently, they are 
net-long some 16,000 contracts.

   Crude oil was markedly higher Wednesday amid claims from Iran that two ships 
were seized in the Strait of Hormuz. Iran's Revolutionary Guard (IRGC) said it 
seized two container ships as they tried to cross the strait "without 
authorization." President Trump has prolonged the U.S. truce with Iran, citing 
a "seriously fractured" political situation within Tehran. The ceasefire will 
remain in place until Iranian leaders present a unified proposal to end 
hostilities. In the meantime, the U.S. Navy would continue its blockade of 
Iran's ports.

   For Wednesday, July closed at 78.64 cents, down 222 points; December 2026 
closed at 80.16 cents, minus 163 points; and March 2027 finished at 81.03 
cents, 160 points lower. Wednesday's estimated volume was 87,560 contracts.

    

   Keith Brown can be reached at commodityconsults@gmail.com




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