DTN Closing Cotton            12/23 13:34

   Cotton Jumps on Exports, GDP

   The cotton market shot higher on strong exports before serious selling 
emerged.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market shot higher on strong exports before serious selling 
emerged. Also, there was short-covering type buying as the details of the 
report were parsed. In addition, the Labor Department issued very positive GDP 
numbers.

   USDA issued another catch-up export sales report today. This release covered 
the week of Dec. 11. Net sales were 304,689 bales for the 2025/26 (current) 
marketing year and net sales of 14,960 bales for 2026/27 for a total of 319,649 
bales. This was up from 153,606 bales the previous week and was the largest 
since Nov. 6. It was also the second time above 300,000 bales this marketing 
year. Shipment recovered to 134,371 bales, the highest since Nov. 6 and up from 
101,577 bales the previous week. Cumulative sales for 2025/26 have reached 55% 
of USDA's forecast versus a five-year average of 71% for this point in the 
marketing year.

   Third quarter GDP showed more economic growth than was expected. In fact, it 
was the fastest pace in two years, far exceeding industry estimate of 3%. The 
economy recorded a 3.8% growth rate in the second quarter. The quarter's GDP 
growth is the highest seen since the third quarter of 2023, when the economy 
expanded by 4.7%.

   For the Christmas holidays, the market will close early on Christmas Eve, 
then all of Christmas Day, and have a shortened session on Friday. In addition, 
President Trump has ordered that all executive departments and agencies of the 
U.S. federal government will be closed on Wednesday, Dec. 24, 2025, and Friday, 
Dec. 26, 2025. Consequently, USDA will be closed on Dec. 24, 25, and 26, and of 
course, the weekend.

   For Tuesday, March 2026 went out at 64.01 cents, up 40 points; July was 
67.27 cents, plus 42 points; and December 2026 closed at 67.46 cents, up 26 
points. Tuesday's estimated volume was 39,670 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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