DTN Closing Cotton            01/08 13:32

   Cotton Sees Last-Second Spill  

   The cotton market spent Thursday's session essentially sideways-to-down, but 
then in the waning moments of trading, it fell much farther. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market spent Thursday's session essentially sideways-to-down, but 
then in the waning moments of trading, it fell much farther. Traders were 
likely disappointed by the export sales. Yet, there are other reports to digest.

   Highlights from Thursday's report showed net sales of 98,031 bales for the 
current marketing year and net sales of 22,491 for 2026-27. The combined total 
was 120,522 bales. Cumulative sales have reached 59% of the USDA forecast 
versus the five-year average of 76% sold for this point in the marketing 
season. Shipments totaled 154,036 bales, up from 140,723 the previous week.

   Friday, the U.S. Supreme Court is expected to rule on the legality of the 
Trump administration's sweeping global tariffs. The challenge to Trump's 
tariffs is among the most closely watched of the cases awaiting decisions by 
the court. Its decision could impact the global economy and as well as being a 
major test of presidential powers.

   Also on Friday, the CFTC will issue its scheduled (current) Commitments of 
Traders information. At last count, the managed-money funds were net-short some 
49,000 bales.

   Monday, USDA will issue its monthly supply-demand update. U.S. exports could 
be reduced, but also the 2025 crop might see a small retraction. The report 
will be at noon eastern.

   The 6- to 10-day weather forecast (Jan. 13 to 17) calls for near-normal 
temperatures for the Southeast and the U.S. Delta, while West Texas will 
experience above-normal readings. Rainwise, Texas eastward into the northern 
Delta will have below-normal chances, while much of the Southeast and 
Mid-Atlantic will see normal to slightly-above normal opportunities.  

   For Thursday, March 2026 went out at 64.46 cents, down 39 points; July was 
67.31 cents, minus 30 points; and December 2026, closed at 68.82 cents, 23 
points lower. Thursday's estimated volume was 59,725 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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