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DTN Closing Cotton            06/27 13:45

   Cotton Ends Limit-Down

   In its continuing seven-day melt, December cotton closed out Monday at 
limit-down.

Keith Brown
DTN Contributing Cotton Analyst

   In its continuing seven-day melt, December cotton closed out Monday at 
limit-down. Trading is being plagued by massive speculative liquidation. The 
fundamental drivers for this bearish decline are fears of an economic recession 
and improving weather patterns for some production areas. In addition, the 
restrictive COVID-19 lockdowns in China are upending its economic activities.

   Monday afternoon, USDA will update the condition of the 2022 crop. The 
overall good-to-excellent rating fell by 6 percentage points last week.

   The six- to 10-day outlook indicates normal to above-normal rain for much of 
the Cotton Belt. However, temperatures are looking above normal. The eight- to 
14-day outlook suggests normal rain and above-normal temperatures for most of 
the Cotton Belt.   

   This Thursday, USDA will release its Planted Acres report. The average 
industry estimate calls for 12.20 million planted acres, which is very close to 
the March intentions of 12.234 million. However, some analysts are expecting 
increased acreage.

   July cotton has been nothing short of amazing in its process swings. On 
Friday alone, the high/low range spanned some 32.00 cents. It is in delivery 
until July 7.

   For Monday, July cotton settled at 100.35 cents, down 3.41 cents, December 
closed at 94.05 cents, down 4.00 cents and March 2023 finished at 89.52 cents, 
4.00 cents lower; estimated volume was 32,584 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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