DTN Closing Cotton            08/27 13:40

   Cotton Surges to New Contract Highs

   The cotton market, in dramatic fashion, posted new life-of-contract highs 
Thursday.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market, in dramatic fashion, posted new life-of-contract highs 
Thursday. Traders continue to push higher, despite farmer selling and poor 
export sales data.

   Highlights from Thursday's export sales included combined seasonal sales of 
135,326 bales. That amount was down from the 274,216 of the previous week and 
the lowest level since July 16. Cumulative sales for 2026/2027 have reached 37% 
of the USDA's seasonal forecast versus a five-year average of 44% for this 
point in the marketing year. Shipments totaled 181,025 bales, down from 222,046 
the previous week.

   The latest U.S. Drought Monitor shows some better improvement. Thursday's 
report indicated that 52% of the U.S. cotton area is in drought, up from the 
previous 40% reading.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders 
numbers. Last report showed that the managed-money funds net bought some 5,800 
positions, augmenting their net-long carry to 78,668 contracts.

   A Reuters news story out Thursday said that high temperatures and heavy rain 
have battered China's key corn, soybean and cotton-growing regions since 
mid-July. There is a threat of crop quality and yield losses that could boost 
imports of feed grains and cotton, including from the United States.

   For Thursday, December closed at 92.41 cents, up 327 points; March 2027 
finished at 94.40 cents, plus 333 points; and July 2027 settled at 94.52 cents, 
304 points higher. Thursday's estimated volume was 74,753 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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