DTN Closing Cotton            01/07 13:37

   Cotton Sorta Slumbers

   Given the twists and turns of outside markets, especially the precious and 
industrial metals, the cotton market settled softer today.

Keith Brown
DTN Contributing Cotton Analyst

   Given the twists and turns of outside markets, especially the precious and 
industrial metals, the cotton market settled softer today. Traders are awaiting 
any additional news which may move the market, including fresh export sales, 
tariffs rulings and the next supply-demand update.

   This Thursday, USDA will issue its current export sales data at 8:30 a.m. 
EST. Sales are running at 11-year lows, and thus have only reached 58% of USDA 
's seasonal forecast versus a five-year average of 75%. Nonetheless, cotton is 
cheap and there have been a couple of weekly sales in excess of 300,000 bales.

   The U.S. Supreme Court will rule this Friday regarding the legality of the 
Trump administration's sweeping global tariffs. The challenge to Trump's 
tariffs is among the most closely watched of the cases awaiting decisions by 
the top U.S. judicial body that could impact the global economy and marks a 
major test of presidential powers.

   Also on Friday, the CFTC will issue its scheduled (current) Commitment of 
Traders information. At last count, the managed-money funds were net-short some 
49,000 bales.

   Also, this Monday, USDA will issue its monthly supply-demand update. As 
implied U.S. exports could be reduced, but also the 2025 crop might see a small 
retraction. The report will be at noon EST. Estimates will come later in the 
week.

   The 6- to 10-day weather forecast (Jan. 12-16) calls for below-normal 
temperatures for the Southeast, normal for the Delta, above-normal for West 
Texas. Rain wise, the entire U.S. Cotton Belt looks to have below too 
much-below normal precipitation opportunities.

   For Wednesday, March went out at 64.85 cents, down 21 points; July was 67.61 
cents, minus 13 points; and December closed at 69.05 cents, 1 point lower. 
Wednesday's estimated volume was 64,388 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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