DTN Closing Cotton            05/13 13:39

   Cotton Market Higher Monday 

   The cotton market was higher Monday, amid its current oversold-condition, 
plus the largest net-short position now held by the managed-money funds. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was higher Monday, amid its current oversold-condition, 
plus the largest net-short position now held by the managed-money funds. The 
market did experience essentially negative supply-demand results in Friday's 
May WASDE.

   On Friday, USDA increased the 2024 crop size above most expectations. Thus, 
the 2024 crop stands at 16.00 million bales. Moreover, exports were lowered, 
while carryout was increased.

   Last Friday, the CFTC's Commitments of Traders update did reveal the 
managed-money funds had sold some 11,700 contracts, placing that group net 
short some 13,700 contracts. 

   Tuesday, traders will see the latest PPI data. Expectations call for a 
month-over-month reading of 0.2%, while the core PPI year-over-year is pegged 
at 2.8%. The report will be out at 8:30 a.m. EDT.

   On Thursday, weekly export sales will be issued, as well as housing starts. 
That latter number is important due to the amount of cotton products used in 
initiating new home living. Both of those reports will be at 8:30 a.m. EDT.

   Crude oil was somewhat higher Monday, supported by a few fundamentals. One 
was OPEC calling Iraq over her violation of set production quotas. Another was 
the seemingly quiet hostilities. A third involves certain anticipations of 
seeing increasing inflation data revealed in this week's economic reports.

   Monday, July was 77.63 cents plus .32 cent; December finished at 75.63 
cents, 50 points higher; March 2025 was 77.12, up 39 points. Monday's estimated 
volume was 33,235 contracts.

    

   Keith Brown

   Moultrie, Georgia

    

   Keith Brown can be reached at commodityconsults@gmail.com




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