DTN Closing Cotton            10/12 13:37

   Cotton Market Still Up

   The cotton market was slightly higher Monday.



Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was slightly higher Monday. Apparently, with Hurricane 
Isaias now gone and its damage yet assessed, traders elected to slough off 
USDA's bearish crop data. Traders are also watching the U.S. dollar and the 
potential for higher interest rates.

   Due to the observance of Columbus Day, USDA will release its weekly Crop 
Progress report Tuesday. It is doubtful that any assessment damage stemming 
from Hurricane Isaias will be documented. Various social media postings 
suggested there was widespread damage to the Alabama cotton crop in particular.

   This week, traders will see new CPI inflation numbers on Wednesday, while a 
fresh PPI report will be out on Thursday. Their results could influence the 
Federal Reserve in its deliberations whether to raise interest rates or not. 
The central bank meets during the last week of October. Currently, the odds of 
an increase in the Fed funds rate stand at 18%.

   Also, because of Columbus Day, weekly export sales are delayed until Friday. 
Highlights from last week's report included net combined seasonal sales of 
221,128 bales. That amount was below the previous 241,727 bales, but was higher 
than the four-week average. Cumulative sales for 2027/28 have reached 44% of 
the USDA forecast versus a five-year average of 53% for this point in the 
marketing year. Shipments totaled 161,588 bales, up from 149,507 bales the 
previous week.

   WTI crude was higher Monday after a deadly attack on Saudi Arabia's airport 
in Riyadh over the weekend. Meanwhile, Ukraine claims that Russia violated the 
energy ceasefire declared by President Trump. Allegedly, the Russians attacked 
a gas production facility in Ukraine.

   For Monday, December closed at 80.60 cents, up 6 points; March 2027 finished 
at 83.81 cents, plus 22 points; and July 2027 settled at 85.93 cents, 18 points 
higher. Monday's estimated volume was 45,190 contracts.

   Keith Brown can be reached at [email protected]




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