DTN Closing Cotton            07/10 13:30

   Cotton Muddles About

   The cotton market enjoyed a see-saw trade Thursday as traders await Friday's 
supply-demand update from USDA.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market enjoyed a see-saw trade Thursday as traders await Friday's 
supply-demand update from USDA. In addition, participants are keeping watch for 
any breaking news regarding the trade or tariff fronts.

   Friday at noon EDT, USDA will issue its July WASDE update. Expectations call 
for a domestic crop of 14.21 million bales. That amount is higher than the 
14.00 million bales reported in June. The anticipated higher production will 
reflect the expanded acres seen in the June 30 acreage report.

   From the weekly export sales data, we note that cumulative U.S. cotton sales 
for both new and old crops are near their lowest levels in a decade. Yet, 
shipments totaled 240,899 last week, the second highest since May 29. Their 
pace has been consistent, which is keeping outstanding sales low. This reduces 
the amount of carryover potential into the new marketing year that begins on 
Aug. 1.

   The U.S. dollar was higher Thursday amid President Donald Trump's latest 
tariff action, including his threat to hit Brazil with a 50% duty. The 
Greenback had been lower early, upended by a sharp decline in yields after a 
10-year note auction on Wednesday saw strong demand. That event somewhat 
tempered the "Sell America" narrative that has seen Treasuries, the Dollar and 
Wall Street stocks sell off earlier this year.

   For Thursday, December 2025 closed at 67.73 cents, minus 5 points; while 
March 2026 settled at 69.08 cents, off 8 points. Thursday's estimated volume 
was 21,545 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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