DTN Closing Cotton            06/17 13:35

   Cotton Market Higher as Tropical Storm Arthur Nears

   The cotton market was materially higher today amid the possible impact of 
Tropical Storm Arthur on the Delta and Southeastern growing fields. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was materially higher today amid the possible impact of 
Tropical Storm Arthur on the Delta and Southeastern growing fields. Some areas 
may see some 3 to 5 inches of heavy rain, with localized flooding. Given that 
the market was already oversold, plus with the approaching three-day weekend, 
speculators covered both short positions, while others chased the rally long.

   The Federal Reserve met today and as expected left U.S. interest rates 
steady. However, the new chair, Kevin Warsh, drastically altered the previous 
Fed statement to change the trajectory of the central bank's inflation goals.

   Crude oil had a very two-sided trade today, amid President Trump's comments 
about restarting the bombing of Iran. The world is awaiting the possible 
signing of the U.S.-Iran memorandum of understanding in Geneva on Friday. That 
event triggers a 60-day period of negotiations over Iran's "nuclear dust."

   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 Wednesday, July closed at 76.90 cents, up 189 points; December closed at 
79.79 cents, plus 204 points; and March 2027 finished at 81.09 cents, up 203 
points. Wednesday's estimated volume was 80,980 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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