DTN Closing Cotton            08/26 13:34

   Cotton Up on Chicago Grains

   Influenced by surging Chicago grains, the cotton market hovered around the 
88.50 cent-plus area Wednesday.

Keith Brown
DTN Contributing Cotton Analyst

   Influenced by surging Chicago grains, the cotton market hovered around the 
88.50 cent-plus area Wednesday. The grains were driven up by weather concerns, 
geopolitical events and demand. On the other hand, cotton is up on poor growing 
conditions in Texas but was still kept in check by producer selling.

   Wednesday's PCE (personal consumption expenditures) Index showed higher 
inflation in its tracking of goods and services. July's numbers, released 
Wednesday, showed a month-over-month change of 0.2% and a year-over-year change 
of 3.7%. Both figures were slightly above expectations.

   The Energy Information Administration latest inventory report came in at the 
bullish end of expectations for crude oil, thanks to the SPR draws. 
Additionally, gasoline and distillate stocks are at their lowest levels for 
this point in the season in at least six years.

   Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales data. 
Last week saw combined seasonal sales of 275,000 sales, with shipments of 
222,000 bales.

   This Friday, the CFTC will update its Commitment of Traders numbers. Last 
report showed that the managed-money funds net bought some 5,800 positions, 
making their net-long carry to 78,668 contracts.

   For Wednesday, December closed at 89.14 cents, up 80 points; March 2027 
finished at 91.07 cents, plus 84 points; and July 2027 settled at 91.48 cents, 
92 points higher. Wednesday's estimated volume was 40,085 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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