DTN Closing Cotton            04/07 13:39

   Cotton Nervously Retreats

   The cotton market is somewhat lower today, a result of its own overbought 
situation, and of course, the rising fears over the U.S./Iranian Strait of 
Hormuz deadline tonight at 8 p.m. EDT. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is somewhat lower today, a result of its own overbought 
situation, and of course, the rising fears over the U.S./Iranian Strait of 
Hormuz deadline tonight at 8 p.m. EDT. Even so, new-crop December has climbed 
to its highest price level since May 2023.

   USDA will issue a new round of export sales on Thursday. Last week saw 
combined seasonal sales over 488,000 bales. Shipments were 356,000, down 11% 
weekly.

   Also on Thursday, USDA will update its supply-demand tables via the April 
WASDE. Supposedly, government tabulators will not assign a yield number until 
the May WASDE report.

   This Friday, traders will see a fresh readout of consumer prices via the 
April CPI. Certainly, increased fuel prices and surcharges have been spreading 
across shipping and airlines, a signal that energy disruptions are already 
feeding into consumer costs.

   Also on Friday, the CFTC will update its Commitment of Traders data. Last 
week saw the managed-money funds had net bought some 21,000 positions, reducing 
their net-short carry to 12,266 contracts.

   For Tuesday, July closed at 73.54 cents, down 30 points; December 2026 
closed at 75.47 cents, minus 28 points; and March 2027 finished at 76.33 cents, 
35 points lower. Tuesday's estimated volume was 100,365 contracts.

   Keith Brown can be reached at [email protected]




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