DTN Closing Cotton            09/24 13:38

   Cotton "Struggles" Higher 

   Despite superior weekly exports-sales, the cotton market had "to fight" to 
stay slightly positive. Likely traders were dismayed by the cancelled bales 
from China. Now, participants are waiting for any positive announcement from 
the Trump/Xi meeting and tomorrow's CFTC data update.  


Keith Brown
DTN Contributing Cotton Analyst

   Allegedly, the Trump Administration is preparing a plan to ban diesel 
exports for 90 days, despite splits inside the administration and with the oil 
industry, in a bid to bring down energy prices weighing on Republicans leading 
into the midterms, Politico reported on Wednesday, citing five people familiar 
with the discussions. 

   Highlights from Thursday's export sales report included net sales of 230,517 
bales for the 2026/2027, and sales of 122,994 for the 2027/20228 season. The 
combined seasonal total was 353,511 bales, up from the previous 77,391. 
Cumulative sales have reached 41% of USDA's forecast versus a five-year average 
of 50% at this time in the marketing year. Weekly shipments totaled 164,704 
bales, up from 142,076 the previous week. Mexico was the biggest buyer at 
189,827, while China canceled 4,702 bales.

   Treasury yields are surging, signaling potential broader impact on the US 
economy, particularly for consumers. Interest Rates along the curve hit highs 
not seen in years, with implications for longer-duration and shorter-term 
borrowing costs. The moves came amid heightened expectation that the Fed will 
approve another rate hike in October.

   For today, December closed at 8331, up 42 points, March 2027 finished at 
8606, plus 41 points, and July 2027 settled at 8797, 14 points higher. Today's 
estimated volume was 49,022 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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