DTN Closing Cotton            09/29 13:39

   Cotton Plunges Limit-Down

   The cotton market was steeply lower, with some contracts limit-down, as the 
culmination of its bearish factors came into full bloom.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was steeply lower, with some contracts limit-down, as the 
culmination of its bearish factors came into full bloom. That is, besides the 
seasonal harvest pressure and lagging demand, overnight, there was a scathing 
article in a major national newspaper detailing alleged "missteps" in the 
cotton export industry.

   Tomorrow, the Commerce Department will release its August personal 
consumption expenditure price index (PCE). Supposedly, that report is the Fed's 
preferred inflation gauge. Some analysts say "if" that number shows a higher 
inflation pace, then the central bank might raise rates in October, not waiting 
for December.

   On Thursday, USDA will release another round of weekly exports-sales. Last 
week's combined sales tallied some 350,000 bales. Mexico was the largest buyer, 
while China was a net canceller of 4,000 bales. Weekly shipments totaled 
164,700 bales, up 16% weekly.

   This Friday, at 3:30 p.m. EDT, the CFTC will update its Commitments of 
Traders data. Last week's numbers showed that the managed-money traders were 
net sellers of 16,000-plus contracts, which reduced their net long carry to 
81,610. Their record stands at 108,788 contracts.

   For today, December closed at 7886, down 400 points; March 2027 finished at 
81.75 cents, off 400 points, and July 2027 settled at 83.82 cents, minus 400 
points. Today's estimated volume was 112,170 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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