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DTN Closing Cotton 10/28 13:37
Cotton Fluttering Ahead of Reports
Cotton rebounds ahead of export sales, Fed decision and month-end
positioning.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market finished somewhat higher Wednesday, after suffering four
consecutive losing sessions. Thus, ahead of Thursday's exports-sales, the CFTC
update, and lastly end-of-the-month positioning, for at least Wednesday "higher
was it."
The Federal Reserve announced steady on interest rates Wednesday. Despite
the presence of higher concentrations of inflation most analysts feel that the
central bank will wait till December to hike rates.
On Thursday, the USDA will issue fresh export-sales. Highlights from that
report revealed total seasonal sales of 199,630 bales, higher than the 154,074
bale number of the previous week. Cumulative sales had reached 47% of USDA's
forecast versus a five-year average of 55%.
Also, on Thursday the September Personal Consumption Expenditures (PCE)
inflation report will be released by the Bureau of Economic Analysis.
Estimates call for Headline PCE to rise 0.5% month-over-month and 3.6%. The
Core PCE (strips out volatile food and energy) is forecasted to increase 0.3%
month-over-month and rise to 3.1% year-over-year. That report will be out at
8:30 a.m. EDT.
Wednesday's Energy Information Administration (EIA)report came in at the
bullish end of expectations for crude oil and diesel and bearish for gasoline.
Crude and distillate stocks are at their lowest levels in at least six years,
and gasoline supplies are climbing off their lows.
For Wednesday, December closed at 78.15 cents, up 9 points, March 2027
finished at 81.90 cents, plus 8 points, and July 2027 settled at 84.05 cents,
16 points higher. Wednesday's estimated volume was 53,896 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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