DTN Closing Cotton            07/14 13:34

   Cotton Markets Ends Nearly Unchanged for Second Straight Session

   For a second consecutive session, the cotton market settled within a few 
ticks of its daily opening.

Keith Brown
DTN Contributing Cotton Analyst

   For a second consecutive session, the cotton market settled within a few 
ticks of its daily opening. Such action suggests indecision. Traders are 
grappling with varying growing conditions, stronger energies and lagging demand.

   From Tuesday's CPI Report, we note that consumer prices posted their biggest 
decline in more than six years. Lower energy prices were the main driver of 
that situation. The Consumer Price Index, which measures a broad array of costs 
for goods and services across the U.S. economy, was lower than expected across 
the board. CPI fell a seasonally adjusted 0.4% for the month, bringing the 
annual inflation rate down to 3.5%. Wednesday at 8:30 a.m., the monthly PPI 
data (whole inflation) will be released.

   This Thursday, USDA will issue new weekly export sales data. Last week saw 
some improvement with current season sales of 66,500 bales, up 36%, and 
shipments of 230,000 bales, up 5%. Nonetheless, the overall U.S. cotton sales 
lag behind the five-year pace.

   Also on Thursday, new monthly retail sales numbers, business inventories and 
jobless claims will be published.

   This Friday, the CFTC will update its Commitment of Traders information. 
Last week saw the managed-money funds had net-bought some 7,100 positions, 
further enhancing their net-long carry to 39,106 contracts.

   The 6- to 10-day weather forecast (July 19-23) shows West Texas with near 
normal temperatures, while the U.S. Delta and the Southeast will experience 
slightly above-normal readings. Rainwise, West Texas should see 
slightly-above-normal chances, with the central U.S. Delta with near-normal 
opportunities and the Southeast with somewhat better odds for precipitation.

   For Tuesday, December closed at 80.87 cents, off 64 points; March 2027 
finished at 82.23 cents, minus 70 points; and July 2027 settled at 82.46 cents, 
down 70 points. Tuesday's estimated volume was 47,826 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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