DTN Closing Cotton            08/07 13:40

   Cotton Hits New Highs Friday

   The cotton market posted new highs for the move Friday amid a weaker U.S. 
dollar, stronger precious metals and stock indexes. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market posted new highs for the move Friday amid a weaker U.S. 
dollar, stronger precious metals and stock indexes. The underlying driver for 
those markets was Friday morning's surprisingly weak U.S. jobs report.

   Recapping the aforementioned August jobs report, July's non-farm payrolls 
report showed a drop of 23,000 jobs, while economists polled by Dow Jones had 
forecast a gain of 83,000 jobs. The unemployment rate fell to 4.1% as the labor 
force participation rate fell to its lowest level in more than five years. 
Economists had expected it to remain unchanged at 4.2%.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders 
data. The previous report showed that the managed-money funds net sold some 700 
positions, slightly reducing their net-long carry to 52,410 contracts.

   Next week, Wednesday, Aug. 12, USDA will present its August World 
Agricultural Supply and Demand Estimates (WASDE) and Crop Production reports, 
updating the various supply-demand tables. Last month, the 2026 crop was raised 
from 13.30 million bales to 13.70 million bales, while ending stocks were also 
increased from 3.70 million bales to 4.10 million bales. The data will be out 
at noon EDT.

   For Friday, December closed at 84.40 cents, plus 124 points; March 2027 
finished at 88.18 cents, up 129 points; and July 2027 settled at 86.91 cents, 
up 24 points. Friday's estimated volume was 52,355 contracts

   Keith Brown can be reached at commodityconsults@gmail.com




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