DTN Closing Cotton            02/20 13:32

   Cotton Higher Despite Outside Thunder 

   The cotton market was higher Friday even in the face of the long-awaited 
tariff ruling. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was higher Friday even in the face of the long-awaited 
tariff ruling. Traders also saw very impressive weekly sales and now wait for 
the CFTC report and March deliveries.

   Friday, the U.S. Supreme Court ruled against a large portion of President 
Trump's tariff agenda. In a 6 to 3 decision, the majority ruled the law in 
question "does not authorize the president to impose tariffs." Chief Justice 
John Roberts delivered the opinion of the court. Justices Clarence Thomas, 
Samuel Alito and Brett Kavanaugh dissented.

   Friday's PCE Index (Personal Consumption Expenditures) -- supposedly the 
Federal Reserve's preferred inflation gauge -- showed inflation held steady in 
December. Excluding volatile food and energy prices, core PCE came in at 3%, in 
line with expectations.

   Fourth quarter GDP increased 1.4% as reported Friday. That was far below the 
estimated 2.5% gain certain economic analysts were anticipating. The 4.4% 
advance in the third quarter sharply surpassed estimates.

   Friday, at 3:30 p.m. EST, the CFTC will update its Commitments of Traders 
data. Its last calculation showed managed-money funds had increased their 
net-short position to 75,602 contracts. Their record concentration from last 
October stands at 81,343 contracts. 

   Monday, March cotton enters its delivery period. Thus, on Friday's close 
growers tied to the March contract had to either flatten or roll to avoid that 
process. Delivery runs through Monday, March 7. 

   For Friday, July closed at 67.18 cents, up 145 points; December 2026 closed 
at 69.30 cents, plus 103 points; and March 2027 finished at 70.14 cents, 65 
points higher. Friday's estimated volume was 110,161 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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