DTN Closing Cotton            03/03 13:35

   Cotton Struggles for Direction

   Amid wild outside volatility, with certain markets up and others down, the 
cotton market essentially remained in limbo today. 

Keith Brown
DTN Contributing Cotton Analyst

   Amid wild outside volatility, with certain markets up and others down, the 
cotton market essentially remained in limbo today. Traders are still looking to 
the U.S./China trade meeting late this month for price inspiration.

   The U.S. dollar posted new highs again today, as its flight-to-quality 
"haven" took on more dramatics. Currently, the Greenback has posted a new high 
for the year.

   Spot March cotton saw 96 delivery notices today. Thus far, some 600 delivery 
tenders have been issued. The delivery period runs through Monday, March 9.

   Crude oil was sharply higher today, as the U.S. and Israel-Iran conflict 
with Iran intensifies. Shipping traffic via the Strait of Hormuz is massively 
reduced as insurers are increasing and/or canceling their policies. One fifth 
of the world's oil and liquefied natural gas typically passes through the 
waterway.

   On Thursday, USDA will issue its weekly export sales report. Last week saw 
net sales of 253,000 bales, off 46% with shipments of 193,000 bales, a 12% 
increase. The numbers are out at 8:30 a.m. EST.

   The U.S. campaign against Iran may be putting Chinese leader Xi Jinping on 
the back foot. Initially, the tariff ruling of the U.S. Supreme Court somewhat 
played into Beijing's hands, but now, with Venezuela and Iran as major oil 
suppliers to China and more or less under U.S. control, China may be more 
amenable to a deal.

   For Tuesday, July closed at 65.95 cents, down 48 points; December 2026 
closed at 68.51 cents, minus 41 points; and March 2027 finished at 69.49 cents, 
45 points lower. Tuesday's estimated volume was 76,920 contracts.

   Keith Brown can be reached at [email protected]




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