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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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