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DTN Morning Cotton Commentary 07/11 06:44
Cotton Market Braces For Data
The cotton trade is flat-to-quiet as traders anticipate today's reports.
Keith Brown
DTN Contributing Cotton Analyst
The cotton trade is flat-to-quiet as traders anticipate today's reports.
Initially, USDA will update its monthly supply-demand tables at noon, followed
by the afternoon's CFTC numbers. Mixed in between are concerns with the U.S.
dollar, the Dow and Canadian tariffs.
Today at 12 p.m. EDT, USDA will update its supply-demand tables via its July
WASDE. For that report, the average trade expectation is calling for domestic
2025-2026 production to be 14.21 million bales, up from 14.00 million seen in
the June report. The higher production amount is being justified with the
increased planted acres as reported on June 30. Domestic ending stocks are
projected at 4.43 million compared to June's 4.30 million. World production is
expected at 117.24 million bales versus the 116.99 million in June, with ending
stocks at 76.87 million bales compared to June's 76.80 million.
Also, this afternoon at 3:30 p.m. EDT, the CFTC will update its
Commitment-of-Traders standing. Last week, the managed-money funds bought-in
some 5,175 positions, reducing their net short carry to 42,910 contracts.
President Donald Trump announced a 35% tariff on Canada and threatened
higher tariffs across the board, citing that nation's slow reaction to halt
fentanyl smuggling. He indicated that higher duties may ensue if Canada does
not become more vigilant. The action sent in the Dow Jones reeling some 300
lower points this morning.
Daily chart support for December Cotton stands at 6700 and 6670, with
resistance at 6810 and 6900. This morning's estimated volume is 4,355 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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