DTN Closing Cotton            06/16 13:47

   Cotton Market Higher on US-Iran Peace Deal

   The cotton market was smartly higher today based on a mixture of reasons, 
but the overarching one is the U.S.-Iran peace deal. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was smartly higher today based on a mixture of reasons, 
but the overarching one is the U.S.-Iran peace deal. Theoretically, lower 
energy costs would give U.S. consumers greater buying power for apparels, as 
well as red meat. Hence, cotton and cattle were markedly higher today.

   The Federal Reserve met today and will announce its take on U.S. interest 
rates Wednesday. Under its new chairmanship, the central bank is not expected 
to take any action.

   Crude oil fell another $4 today. In fact, it is about $12 from filling the 
March 2 gap when the U.S. first attacked Iran. Of course, there will be 
continued lingering volatility until the full terms of the peace framework are 
known and agreed upon.

   On Thursday, USDA will issue fresh export sales numbers. Last week saw net 
combined seasonal sales of 505,000 plus bales. Shipments exceeded 300,000 
bales, up 12% weekly.

   The market will be closed this Friday for the Juneteenth holiday. The ICE 
futures will reopen the following Sunday night at 9 p.m. EDT, but likely 
certain reports will be pushed back a day.

   For Tuesday, July closed at 75.01 cents, up 158 points; December closed at 
77.75 cents, plus 94 points; and March 2027 finished at 79.06 cents, up 94 
points. Tuesday's estimated volume was 57,345 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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