DTN Closing Cotton            06/09 13:43

   Cotton Market Stretches Bearish Lead

   The cotton market was materially lower today amid the unwinding of long 
positions by certain speculators. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was materially lower today amid the unwinding of long 
positions by certain speculators. With most conventional technical indicators 
pointing south, along with the fact that the emerging 2026 cotton crop is 
"glowing underway." Since last Tuesday, December cotton is down some 560 points.

   Option expiration for the July contract is Friday, June 12, while the Spot 
July contract commences delivery on June 24 and runs through July 9.

   This Thursday, USDA will issue weekly export sales at 8:30 a.m. EDT. Last 
week's business saw sales of 185,268 bales for the current marketing year and 
77,145 for 2026/27 for a total of 262,413. The prior combined season sales were 
265,663 bales, with the four-week average running around 216,000.

   Also on Thursday, at 12 p.m. EDT, USDA will issue the June WASDE. Last 
month, government tabulators projected the 2026/2027 crop to be 13.30 million 
bales, with a domestic carryout of 3.90 million, and a global supply of 75.05 
million bales. We also note that the official Planted Acres will be released on 
June 30.

   The 6- to 10-day forecast (June 14-18) shows much below-normal temperatures 
for Texas and the Delta, while the Southeast still experiences slightly 
above-normal temperatures. Rain wise, Texas looks to have slightly above-normal 
chances, while the U.S. Delta sees much above-normal opportunities, and the 
Southeast just slightly above-normal chances.

   For Tuesday, July closed at 71.26 cents, down 213 points; December closed at 
75.30 cents, minus 231 points; and March 2027 finished at 76.58 cents, 229 
points lower. Tuesday's estimated volume was 125,072 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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