DTN Morning Cotton Commentary          02/27 07:10

   Cotton Trades in 'Easy Does It' Mode

   After Thursday's retreat, the cotton market is trading firmly sideways on 
the last day of February. 

Keith Brown
DTN Contributing Cotton Analyst

   After Thursday's retreat, the cotton market is trading firmly sideways on 
the last day of February. The market has been seeing a small influx of recent 
buying as speculators have become overly bearish and certain positive seasonal 
tugs seem to be emerging.

   Spot March cotton saw zero delivery notices Friday. For the record, some 504 
notices have been tendered against the spot month. The delivery period runs 
through Monday, March 7. 

   Friday at 3:30 p.m. EST, the CFTC will issue its weekly Commitments of 
Traders report. At last count, the managed-money funds had net sold 3,900 
contracts, swelling their current bearish position to 79,508 contracts. For 
context, their record high negative carry, from last October, stands at 81,343 
contracts.

   Crude oil is sharply higher Friday morning as traders remained nervous over 
the flow of the U.S./Iranian talks. Thus far, the talks have not reached any 
acceptable conclusion for the US. The two sides plan to resume negotiations 
with technical-level discussions scheduled next week in Vienna.

   Next Monday ushers in not only a new trading month, but the first month of 
the historical three-month spring planting window. With that, USDA will issue 
updated supply-demand tables via the WASDE on March 10, and the highly 
anticipated 2026 Planting Intentions report on March 31.

   Chart support for July cotton stands at 66.70 cents and 66.45 cents, with 
resistance around 68.00 cents and 68.50 cents. Friday morning's estimated 
volume is 10,205 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com or by calling 
(229) 890-7780.




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