DTN Closing Cotton            08/24 13:37

   Cotton Pushes Toward Its Highs

   Despite a growing overbought condition and producers' fixations at the 89.00 
cent or better level, the cotton market eased higher Monday. 

Keith Brown
DTN Contributing Cotton Analyst

   Despite a growing overbought condition and producers' fixations at the 89.00 
cent or better level, the cotton market eased higher Monday. Since its July 1 
settlement, new-crop December has advanced nearly 12 cents, halting just below 
the 90-cent mark. Traders will continue to key on weather events and any demand 
news that might emerge to influence prices.

   Recent weather notes include that dry conditions in Texas and parts of the 
Delta have manifested in declining crop conditions over the past several weeks. 
World Weather Inc. says dryland crops in West Texas have been deteriorating 
recently and the trend will continue for the next 10 days. The Delta has been 
too hot and dry recently, too, but some partial relief is possible over the 
next 10 days.

   This afternoon at 4 p.m. EDT, USDA will issue fresh condition ratings for 
the 2026 U.S. crop. Last week, saw the national crop at 38% good to excellent, 
down from the previous weekly reading of 40% and well below last year's reading 
of 55% good to excellent.

   The U.S. dollar edged higher Monday as the U.S. Treasury promised to buy 
back more long-dated bonds. A TV business channel reported that Secretary Scott 
Bessent could tap into the TGA (Treasury General Account), which stands at one 
trillion dollars, to help fund bond buybacks.

   Crude oil sharply fell Monday as traders await the details of Washington's 
ramped-up economic sanctions against Iran. The Trump administration said last 
week that it intends to "collapse" the Islamic Republic with the "toughest 
sanctions in history."

   The 6- to 10-day weather forecast (Aug. 29-Sept. 2) shows above-normal 
temperatures for the U.S. Cotton Belt, with Texas suffering much-above 
readings. Rain-wise, Texas will experience below-normal chances, the Delta 
somewhat normal chances, and the Southeast will see slightly above-normal 
opportunities

   For Monday, December closed at 88.83 cents, plus 48 points; March 2027 
finished at 90.69 cents, up 54 points; and July 2027 settled at 90.83 cents, 45 
points higher. Monday's estimated volume was 51,575 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




(c) Copyright 2026 DTN, LLC. All rights reserved.