DTN Closing Cotton            05/07 13:35

   Cotton Wobbles Higher

   After showing an early promise of a strong up day, cotton futures pared most 
of their gains to end only moderately higher. 

Keith Brown
DTN Contributing Cotton Analyst

   After showing an early promise of a strong up day, cotton futures pared most 
of their gains to end only moderately higher. The market remains in a steep 
downtrend, as last week speculators numerically soured on the action by 
reversing to net short. Ahead this week, traders will see weekly export sales, 
plus an update to the supply-demand tables from USDA.

   Spot May cotton is set to expire Wednesday at the close. To date, some 
400-plus delivery notices have been tendered against that contract. July cotton 
will commence its delivery in seven weeks, on Monday, June 24.

   This Thursday, USDA will issue a fresh round of export sales. Last week's 
net sales were only in the double digits. However, there is talk that South 
American cotton could be hurt from all of the copious amounts of rain. Such 
adversity might bring some business back to the United States. The data will be 
out at 8:30 a.m. EDT.

   On Friday, USDA will present its monthly supply-demand updates in the May 
Crop Report. Reportedly, government statisticians will give their initial 
estimates on yield and production levels of the U.S. and world new crops. That 
report will be published at 12:00 p.m. EDT.

   The six-to-ten-day forecast is showing below to much below temperatures for 
the U.S. Cotton Belt. Meanwhile, rain chances are slightly above for Texas, but 
much above for the Southeast.

   Tuesday, July was 77.50 cents, up 0.44 cent, and December finished at 75.75 
cents, 0.44 cent higher, and March 2025 was 77.26, up 0.43 cent. Tuesday's 
estimated volume was 36,721 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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