DTN Closing Cotton            09/10 13:42

   Cotton Higher Amid $100 Crude Oil

   The cotton market was somewhat higher Thursday, but $100 crude oil cast an 
"eerie" feeling across global markets.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was somewhat higher Thursday, but $100 crude oil cast an 
"eerie" feeling across global markets. Nonetheless, cotton traders are still 
awaiting Friday's plethora of likely influential reports.

   An updated CPI (consumer inflation) report will be out Friday at 8:30 a.m. 
EDT. Given Thursday's slightly higher PPI number, CPI will confirm, or not, the 
presence of inflation in the U.S. economy. Thus, the Federal Reserve may be 
prompted to hike interest rates. The central banks will meet next week.

   Weekly export sales will be issued Friday. The last report showed a very 
weak sales number of 27,525 bales for the current marketing year. That amount 
was the lowest since the big cancellations at the end of the 2023/24 marketing 
year.

   At noon EDT Friday, USDA will release its monthly supply-demand update. For 
that report, the average trade guess calls for U.S. 2026/27 production to be 
13.19 million bales, down from the previous 13.61 million bales. Exports are 
expected to be at 12.14 million bales, versus 12.30 million seen in August. 
Domestic stocks are expected at 3.79 million bales versus the prior numbers of 
4.00 million bales. If realized, that would be the lowest ending stocks number 
since 2023/2024 season with 3.15 million bales.

   Lastly at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
numbers. The last report had the managed-money funds as net-buyers of 12,000 
positions. Their buying action swelled the overall net-long carry to 107,936 
contracts. Their record carry was 108,788 contracts.

   For Thursday, December closed at 88.22 cents, up 94 points; March 2027 
finished at 90.66 cents, plus 101 points; and July 2027 settled at 91.43 cents, 
some 98 points higher. Thursday's estimated volume was 47,863 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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