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DTN Closing Cotton 09/09 13:57
Cotton Higher as Traders Look Ahead to Key Reports
The cotton market was somewhat higher Wednesday amid short-covering and
bargain-buying traders who were collectively "urging" prices higher.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was somewhat higher Wednesday amid short-covering and
bargain-buying traders who were collectively "urging" prices higher. Starting
Thursday and into Friday, there will be a slew of potentially market-moving
reports. Those releases will reflect exports, inflation numbers, supply-demand
tallies and Commitment of Traders data.
Thursday at 8:30 a.m., new inflation data via the PPI (a measure of
wholesale costs of goods and services) will be released. It is forecasted to
show a rise of 0.4%.
As a follow up to the PPI on Friday, fresh CPI (consumer inflation) will be
issued at 8:30 a.m. EDT. The recent August jobs report has traders thinking the
Federal Reserve may indeed hike interest rates. The Federal Open Market
Committee meets next week from Sept. 15-16.
Also on Friday, a new round of export sales will be published. Last week saw
sales of 27,525 bales for the 2026/2027 marketing year. That sales amount was
the lowest since the big cancellations at the end of the 2023/24 marketing year.
At noon EDT on Friday, USDA will release its monthly supply-demand update.
For that report, the average trade guess calls for U.S. 2026/27 production to
be 13.19 million bales, down from the previous 13.61 million bales. Exports are
expected to be at 12.14 million bales, versus 12.30 million bales seen in
August. Domestic stocks are expected at 3.79 million bales versus the prior
number of 4.00 million bales. If realized, that would be the lowest ending
stocks number since 2023/2024 season with 3.15 million bales.
Lastly on Friday, at 3:30 p.m. EDT, the CFTC will update its Commitment of
Traders numbers. The last report had the managed-money funds as net-buyers of
12,000 positions. Their action swelled the overall long carry to 107,936
contracts. Their record carry was 108,788 contracts.
For Wednesday, December closed at 87.28 cents, up 96 points; March 2027
finished at 89.65 cents, plus 94 points; and July 2027 settled at 90.48 cents,
95 points higher. Wednesday's estimated volume was 46,659 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
(c) Copyright 2026 DTN, LLC. All rights reserved.
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