DTN Closing Cotton            08/28 13:36

   Cotton Market Hit by Friday Profit-Taking

   After its upside bullish romp Thursday, the cotton market was hit with 
Friday profit-taking selling. 

Keith Brown
DTN Contributing Cotton Analyst

   After its upside bullish romp Thursday, the cotton market was hit with 
Friday profit-taking selling. However, we note that the month of August 
concludes on Monday, and soon enough, the 2026 harvest will be upon the 
industry.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders 
numbers. Last report showed that the managed-money funds net bought some 5,800 
positions, increasing their net-long carry to 78,668 contracts.

   On Monday, USDA will update its condition data for the 2026 crop. Last 
week's reading had the U.S. crop at 38% good to excellent, well below previous 
week and five-year average levels. That report will be out at 4 p.m. EDT.

   The U.S. dollar was materially higher Friday after Federal Reserve Chair 
Kevin Warsh hinted that interest rate hikes may be needed to curb inflation. In 
his debut speech at the Jackson Hole symposium of central bankers, Warsh said 
the Fed will "have work to do" should inflation not appear to cool.

   For Friday, December closed at 91.38 cents, down 103 points; March 2027 
finished at 93.34 cents, minus 106 points; and July 2027 settled at 93.67 
cents, 84 points lower. Friday's estimated volume was 67,238 contracts.

   Keith Brown can be reached at [email protected]




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