DTN Closing Cotton            05/01 13:35

   Cotton Market Hits New Contract Highs to Start May

   After experiencing an eight-cent plus rally in the month of April, the 
cotton market continues posting new contract highs on May 1.

Keith Brown
DTN Contributing Cotton Analyst

   After experiencing an eight-cent plus rally in the month of April, the 
cotton market continues posting new contract highs on May 1. Traders were 
encouraged by a weaker U.S. dollar, falling crude oil, the imminent Trump-Xi 
meeting and additional fund buying.

   Today at 3:30 p.m. EDT, the CFTC will update its Commitment of Traders 
information. Last week, the report showed that the managed-money funds bought 
some 17,000 positions, strengthening their net-long carry to 34,464 contracts.

   President Trump and Xi are scheduled to meet on May 14 in Beijing to discuss 
trade and geopolitical topics. China wants the assurance of uninterrupted 
energy supplies, while the U.S. is looking to increase agricultural exports.

   Cumulative sales for 2025/26 have reached 95% of the USDA forecast versus a 
five-year average of 103% for this point in the season. Shipments totaled 
384,608 bales, up from 296,379 the previous week.

   The U.S. weekly Drought Monitor showed no improvement last week, with 
approximately 98% of U.S. cotton production still experiencing drought as of 
April 28. A year ago, about 21% was in drought.

   Recent weather headlines include that west Texas saw some rain last night, 
but expects more into Saturday morning. South Texas needs much more rain to 
support non-irrigated cotton development, but its areas will not see much 
significant rain for a while. The Delta received some welcomed rain recently 
and more is coming Friday and Saturday. The southeastern U.S. will continue to 
suffer in drought over the next 10 days, despite some showers and thunderstorms 
that will offer temporary relief Friday into Saturday.

   For Friday, July closed at 84.19 cents, up 199 points; December 2026 closed 
at 84.56 cents, plus 169 points; and March 2027 finished at 85.26 cents, 157 
points higher. Friday's estimated volume was 91,062 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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