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DTN Morning Cotton Commentary          07/26 08:17

   Cotton Lower on Hedge Selling  

   The cotton market is triple-digits lower Monday as some hedge selling is 
emerging in the market.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is triple-digits lower Monday as some hedge selling is 
emerging in the market. Given this is the last week of July, plus knowing the 
market has already traded above the 90-cent mark, some producers are feeling 
the need to do some protective selling.

   Monday afternoon at 4 p.m. EDT, USDA will report on the 2021 cotton crop's 
status. Last week, the nation's crop was rated at 60% good/excellent. Texas was 
52% good/excellent, but Georgia had slipped from 74% good/excellent to 68%. The 
intermediate weather outlooks are turning a bit more detrimental for Texas, 
indicating above-normal temperatures and below-normal rainfall.

   The Federal Reserve is meeting this week to decide on monetary policy. No 
change is expected, but traders will be anxious to see if there is any verbal 
evidence to suggest the Fed will begin to pull back on its buying of U.S. debt.

   Friday's Commitments-of-Traders report showed managed money traders are now 
net long 59,492 contracts. As of July 20, that group had bought an additional 
2,670 contracts to increase their bullish position.

   For Monday, close-in support for December cotton is 88.70 cents and 87.60 
cents, while resistance stands at 90.00 cents and 90.75 cents. The estimated 
morning volume is 8,652 contracts.

    

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




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