DTN Closing Cotton            06/24 13:37

   Cotton Nears Limit Down Wednesday

   The cotton market was demonstratively lower today, nearly within arm's 
length of trading limit down.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was demonstratively lower today, nearly within arm's 
length of trading limit down. Root causes were mixed, but the appearance of 
spot deliveries, collapsing crude oil and gold, and some squaring ahead of next 
Tuesday's acres estimates all bearishly contributed to the decline.

   There were 527 notices issued today against the July contract. Term 
Commodities was the main issuer, while Macquarie and SG Americas were the two 
top stoppers. July delivery runs through July 7.

   USDA will issue its weekly export sales data on Thursday at 8:30 a.m. EDT. 
Last week saw current year net sales of 177,000, off 15%, with shipments of 
251,000, down 16%.

   On June 30, USDA will issue its Planted Acres report. Some analysts are 
expecting greater 2026 acres due to the spring rally to 88.00 cents. It is 
worth noting that the March Intentions were higher than expected.

   The U.S. dollar continued its upward trek for the third consecutive session. 
The greenback has hit a 13-month high. Traders are bracing for anticipated rate 
hikes from the Federal Reserve later this year, while a recent selloff in 
technology stocks also provided support for the greenback. In addition, a 
recent drop in equities, including tech stocks around the globe, are helping to 
lift the safe-haven dollar.

   The 6- to 10-day weather forecast (June 29-July 3) shows above-normal to 
much above-normal temperatures for much of the country. Rainwise, Texas now 
looks to have normal rainfall chances, while the Delta and the Southeast will 
likely face below-normal opportunities. The U.S. Drought Monitor currently 
shows that 76% of the U.S. Cotton Belt remains in drought, down from its 
earlier peak reading 98% drought.

   For Wednesday, July closed at 72.09 cents, off 187 points; December closed 
at 76.26 cents, minus 247 points; and March 2027 finished at 77.67 cents, down 
239 points. Wednesday's estimated volume was 53,284 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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