DTN Closing Cotton            04/17 13:28

   Cotton Carves Out New Lows

   The cotton market posted fresh lows for its current move Wednesday.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market posted fresh lows for its current move Wednesday. Since 
April 1, the general market has collapsed some 1350 points. There continues to 
be intense speculator and producer selling. In addition, the market was 
undermined by failing outside markets.

   Spot May will enter its delivery period next week (April 24). Coming into 
Wednesday's trade, the open interest for the May contract stands at 19,200. In 
addition, ICE exchange stocks have reached 166,190 bales, which is the highest 
they have been since June 2021.

   This Thursday at 8:30 a.m. EDT, USDA will issue its weekly export sales.  
Last week's report saw sales of 81,500 bales, off 4% and shipments of 274,000 
bales, down 25% respectively. However, China was the leader in both categories.

   The U.S. energy complex was lower for the third consecutive trading session 
Wednesday, with crude oil dipping below $85 a barrel. Traders are beginning to 
dismiss the risk of a wider war between Israel and Iran. Last week saw a huge 
surge of prices as traders were dialing in a war premium.

   Wednesday, May cotton settled at 79.56 cents, down 1.73 cents, July was 
81.33 cents, down 1.76 cents, and December finished at 78.54 cents, 0.60 cent 
lower. Wednesday's estimated volume was 56,187 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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