DTN Closing Cotton            02/05 13:32

   Cotton Unravels Lower 

   The cotton market remains on its path of least resistance which is lower. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market remains on its path of least resistance which is lower. 
Thus, despite decent export sales, new price lows were ushered in Thursday. 
Traders still await other data points, including next week's February WASDE.

   Highlights from this morning's export sales report include combined sales 
back above 300,000 for the third time in four weeks. Also, a large portion 
consisted of new-crop sales, and the buying was spread out across several 
countries, with Vietnam, Malaysia, and Pakistan all above 50,000 bales. 
Cumulative sales have reached 70% of the USDA forecast versus a five-year 
average of 85% for this point in the marketing year. Shipments totaled 235,313 
bales, down from 257,036 the previous week.

   March options will expire Friday on the close. Current open interest for 
spot March is around 160,000 contracts. Spot March will enter its delivery 
period on Feb. 23. Traders and hedgers will have to vacate the contract the 
preceding Friday to avoid the notice process. 

   Also on Friday, CFTC will update its Commitments of Traders report. Its last 
release showed managed-money funds had net sold some 13,000 contracts, 
increasing their overall bearish position to 65,000-plus.

   Next Tuesday, USDA will issue its February supply-demand update. There is a 
possibility the government tabulators will increase domestic ending stocks. 
Then on Thursday, Feb. 12, the NCC will release its 2026 acres membership 
survey.

   For today, March 2026 went out at 61.76 cents, 48 points lower; July was 
65.26 cents, down 46 points; and December 2026 closed at 68.00 cents, minus 24 
points. Thursday's estimated volume was 89,161 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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