DTN Closing Cotton            06/01 13:32

   Cotton Market Shines, Then Dulls

   The cotton market was sharply higher earlier in today's session, but then 
gave back over half of those gains.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was sharply higher earlier in today's session, but then 
gave back over half of those gains. Stronger crude oil, USDA's new plan to 
promote U.S. cotton and news that India was lifting tariffs on imported cotton 
were the main drivers of the session. However, the Indian news was less 
compelling due to the currency exchange rate.

   This afternoon at 4 p.m. EDT, USDA will update its planting progress 
reports. Last week, the 2026 crop was 53% planted which was in line with its 
five-year average.

   Last Friday, the CFTC updated its Commitment of Traders data. The numbers 
showed that the managed-money had sold some 7,800 positions, reducing their 
overall net-long carry to 54,200 contracts. The next report will be this Friday 
at 3:30 p.m. EDT.

   The Climate Prediction Center published its drought monitor readings last 
Thursday. Currently, some 94% of the U.S. cotton area is rated as being in 
drought. The peak number was 98% from two weeks ago.

   Last week's export sales report showed U.S. cotton net sales of 153,622 
bales for 2025/2026 and 112,041 for 2026/2027 for a total of 265,663. This 
amount was down from 347,754 the previous week. Cumulative sales for 2025/26 
have reached 99% of the USDA forecast for the 2025/26 marketing year versus a 
five-year average of 107% for this point in the marketing year.

   For Monday, July closed at 76.64 cents, up 49 points; December closed at 
80.16 cents, plus 57 points; and March 2027 finished at 81.32 cents, 60 points 
higher. Monday's estimated volume was 85,805 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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