DTN Morning Cotton Commentary          09/21 07:26

   Cotton Trades Up

   The cotton market is higher as it tries to correct its "oversold condition."

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is sharply higher as it tries to correct its "oversold 
condition", as well as expressing hopeful anticipation with the upcoming 
Trump/Xi meeting this week. Traders are also carrying-out some 
end-of-the-quarter squaring as well. 

   Last Friday, the CFTC issued its updated C-O-T data. The report revealed 
that the managed-money funds, per Tuesday's close, had net-sold 2,267 positions 
reducing their overall net-long carry to 97,903 contracts. 

   At 4 p.m. today, USDA will publish its weekly crop progress reports. Last 
week's data showed that the current crop was rated 36% good/excellent and was 
8% harvested. 

   This Thursday the long-awaited Trump/Xi trade meeting will take place in 
Washington. The two leaders will discuss, among many topics, tariffs, trade, 
AI, Iran, and Taiwan. 

   Also, this Thursday, October Cotton contract will enter its delivery. Its 
current open interest stands at 80 contracts.

   Crude Oil is materially lower today as Middle East oil flows remain 
surprisingly strong despite the disruption to Saudi Arabia's East-West 
pipeline. President Donald Trump said he is in a "deciding mode" and "very big 
things" are going to happen in the near future regarding the US/Iran Conflict. 
Still, diesel costs for US farmers have doubled from last year's price. 
Summarily, record diesel prices will likely place upside pressure on food 
transports, resulting in higher retail prices for grocery staples. 

   For today close-in support for December Cotton stands at 8210 and 8050, with 
resistance around 8330 and 8545. This morning's estimated volume is 20,941 
contracts.

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




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