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DTN Closing Cotton 06/16 13:47
Cotton Market Higher on US-Iran Peace Deal
The cotton market was smartly higher today based on a mixture of reasons,
but the overarching one is the U.S.-Iran peace deal.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was smartly higher today based on a mixture of reasons,
but the overarching one is the U.S.-Iran peace deal. Theoretically, lower
energy costs would give U.S. consumers greater buying power for apparels, as
well as red meat. Hence, cotton and cattle were markedly higher today.
The Federal Reserve met today and will announce its take on U.S. interest
rates Wednesday. Under its new chairmanship, the central bank is not expected
to take any action.
Crude oil fell another $4 today. In fact, it is about $12 from filling the
March 2 gap when the U.S. first attacked Iran. Of course, there will be
continued lingering volatility until the full terms of the peace framework are
known and agreed upon.
On Thursday, USDA will issue fresh export sales numbers. Last week saw net
combined seasonal sales of 505,000 plus bales. Shipments exceeded 300,000
bales, up 12% weekly.
The market will be closed this Friday for the Juneteenth holiday. The ICE
futures will reopen the following Sunday night at 9 p.m. EDT, but likely
certain reports will be pushed back a day.
For Tuesday, July closed at 75.01 cents, up 158 points; December closed at
77.75 cents, plus 94 points; and March 2027 finished at 79.06 cents, up 94
points. Tuesday's estimated volume was 57,345 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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