DTN Morning Cotton Commentary          07/15 07:11

   Cotton Wobbles as it Eyes Iran, Weather

   The cotton market is slightly higher Wednesday morning, but still huddling 
near its Sunday night opening of 81.51 cents. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is slightly higher Wednesday morning, but still huddling 
near its Sunday night opening of 81.51 cents. Traders continue to monitor 
weather and growing conditions across the U.S. Cotton Belt, as well as across 
the Northern Hemisphere, especially India. Anticipated reports for the balance 
of the week include Wednesday's PPI data, as well Thursday's export sales 
numbers and Friday's CFTC update, among others. 

   This Thursday, USDA will issue new weekly export sales data. Last week saw 
some improvement with current season sales of 66,500 bales, up 36%, and 
shipments of 230,000 bales, up 5%. Nonetheless, the overall U.S. cotton sales 
lag behind the five-year pace.

   Also on Thursday, new monthly retail sales numbers, business inventories, 
and jobless claims will be published.

   This Friday, the CFTC will update its Commitments of Traders information. 
Last week saw the managed-money funds had net-bought some 7,100 positions, 
further enhancing their net-long carry to 39,106 contracts.

   Crude oil is trading higher Wednesday as U.S. forces carried out a fourth 
round of attacks on Iran. In addition, Washington has reinstated its naval 
blockade of Iranian ports near the Strait of Hormuz. Central Command reported 
the new wave of attacks targeted dozens of military assets near the Strait of 
Hormuz and along Iran's coastline in a seven-hour operation.

   Chart support for December cotton stands at 80.20 cents and 79.50 cents, 
with resistance around 83.00 cents and 83.50 cents. Wednesday morning's 
estimated volume is 8,787 contracts.

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




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