DTN Closing Cotton            05/18 13:46

   Cotton Higher Alongside Stronger Outside Markets

   The cotton market was materially higher today alongside stronger outside 
markets.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was materially higher today alongside stronger outside 
markets. According to a White House fact sheet, released on Sunday, China will 
supposedly be a bigger buyer of U.S. agriculture than traders originally 
thought.

   Specifically, China will supposedly buy $17 billion dollars in U.S. 
agricultural goods over the next three years (prorated for 2026). This is in 
addition to the 25 million metric tons (mmt) of U.S. soybeans they pledged to 
purchase over the next three marketing years since last October. If such 
numbers are realized, it would take the total annual U.S. agricultural 
purchases to $28-$30 billion -- the highest in four years. China also suggested 
they would drop existing tariffs on U.S. ag goods.

   Today at 4 p.m. EDT, USDA will issue its weekly crop progress data. Last 
week, the 2026 crop was reported at 29% planted compared to its five-year 
average of 28% complete.

   Crude oil was higher today on fears that the Middle East conflict will soon 
be renewed. President Trump had previously said that "the clock was ticking," 
meaning if there is no peace deal, then Iran will be fully punished.

   This Thursday, USDA will release its weekly export sales. Last week's 
numbers revealed a mere 47,000 bales sold. It was a marketing-year-low amount.

   For Monday, July closed at 83.70 cents, up 309 points; December closed at 
83.98 cents, plus 207 points; and March 2027 finished at 84.59 cents, up 204 
points. Monday's estimated volume was 70,067 contracts.

   Keith Brown can be reached at [email protected]




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