DTN Closing Cotton            09/16 13:46

   Cotton Market Limit-up to Sharply Higher

   The cotton market was limit-up to sharply higher across the ICE contracts 
Monday.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was limit-up to sharply higher across the ICE contracts 
Monday. Two main reasons were potential losses from recent storms and a steep 
net short position held by speculators. Traders also expect lower interest 
rates this week, which should translate into a weaker U.S. Dollar, thus likely 
enhancing exports. 

   Monday afternoon at 4 p.m. EDT, USDA will issue its crop condition report. 
Last week's data showed the U.S. crop was 40% good-excellent versus the prior 
44% good-excellent rating. 

   The Federal Reserve is holding its two-day monthly meeting, at which it will 
supposedly announce a reduction in U.S. interest rates. However, traders are 
torn between a quarter-point or the more desired half-point change. The 
announcement occurs at 2 p.m. EDT Wednesday. 

   This Thursday, USDA will issue its weekly exports-sales report. Currently, 
sales are running about 30% of USDA's marketing forecast. However, the average 
sales number for this time of year stands at 55%.

   For Monday, December ended at 7282, up 300 points, March 2025 was 7424, plus 
300 points, and July 2025 was 7581, 275 points higher. Today's estimated volume 
was 79,378 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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