DTN Closing Cotton            02/24 13:33

   Cotton Feels 'Money Flow'?

   The cotton market posted a higher close today as end-of-the-month squaring 
and speculative short-covering were noted. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market posted a higher close today as end-of-the-month squaring 
and speculative short-covering were noted. However, to some degree, a measure 
of "money flow" is unfolding. This is a practice where highly favored markets 
(gold, silver) are seeing financial outflows to disfavored markets such as 
cotton and grains by major funds and index traders.

   March cotton is in its delivery and today saw 16 deliveries issued by Term 
Commodities. The delivery period runs through Monday, March 7.

   Tonight at 9 p.m. EST, President Trump will deliver the State of the Union 
address. Trump may argue the need for tariff powers to conduct trade agreements 
and treaties with the nations of the world.

   On Thursday, USDA will release another weekly export sales report. Last week 
saw a combined seasonal sales number of 335,663 bales, for which the old crop 
was a marketing-year-high amount. Weekly shipments were 172,6000 bales, off 9% 
from the previous week.

   On Friday at 3:30 p.m. EST, the CFTC will issue another Commitment of 
Traders report. This past week it showed that the managed-money funds had net 
sold some 3,900 contracts, swelling their current bearish position to 79,508 
contracts. For context, their record high negative carry, from last October, 
stands at 81,343 contracts.

   For Tuesday, July closed at 67.19 cents, up 37 points; December 2026 closed 
at 69.38 cents, plus 34 points; and March 2027 finished at 70.28 cents, 35 
points higher. Tuesday's estimated volume was 79,467 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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