DTN Morning Cotton Commentary          07/01 07:18

   Cotton Rebounds a Touch Wednesday

   After weathering an unfriendly acres report Tuesday, the cotton market is 
grinding higher Wednesday. 

Keith Brown
DTN Contributing Cotton Analyst

   After weathering an unfriendly acres report Tuesday, the cotton market is 
grinding higher Wednesday. The focus of traders will now be on weather and 
growing conditions, domestically and abroad, export sales and the next WASDE 
update.

   Thursday, USDA will issue fresh export sales numbers. Last week, the current 
crop sales were 83,000 bales, off 53%, while shipments were some 300,000 bales, 
up 20%.  

   The Labor Department will release its monthly jobs report on Thursday. Last 
month saw a job tally of 172,000, with an unemployment rate of 4.4%. 
Expectations for this week are 113,000 new non-farm jobs. The report is out at 
8:30 a.m. EDT.

   Spot July remains in delivery, however Wednesday there were zero notices 
tendered. To date, there have been 545 contracts delivered. The delivery period 
runs through July 9.  

   The 6- to 10-day weather forecast (July 6-July 10) shows above-normal to 
much-above normal temperatures for much of the country. Rainwise, Texas looks 
to have slight chances, while the Southeast and the Delta should see 
better-than-normal opportunities. The U.S. Drought Monitor currently shows 58% 
of the U.S. Cotton Belt remains in drought, down from its highest peak reading 
of 98% drought.

   With the observance of the Fourth of July, America's 250th, the cotton 
market will be closed this Friday. It will reopen next Monday at 8 a.m. EDT.

   Chart support for December cotton stands at 76.00 cents and 75.10 cents, 
with resistance around 78.00 cents and 79.25 cents. Wednesday morning's 
estimated volume is 10,580 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com or by calling 
(229) 890-7780.




(c) Copyright 2026 DTN, LLC. All rights reserved.