DTN Closing Cotton            01/05 13:38

   Cotton Rides Commodity Euphoria

   The cotton market was higher, somewhat driven by positive outside markets. 

Keith Brown
DTN Contributing Cotton Analyst

   Cotton Rides Commodity Euphoria

   The cotton market was higher, somewhat driven by positive outside markets. 
Grains, metals and financials were all demonstratively up today loosely based 
on the military action taken against Venezuela's President Maduro. In addition, 
some traders are priming for better supply and demand news in next week's WASDE.

   Last week, USDA released details regarding payments from the Farmer Bridge 
Assistance program. The highest per-acre payments will be paid to rice farmers, 
who could receive $132.89 an acre, followed by cotton farmers, who would 
receive $117.35.

   The CFTC will issue another catch-up Commitment of Traders report at 3:30 
p.m. EST today, covering Dec. 30. Its last update (covering Dec. 23) showed 
that the managed-money traders were net buyers of 4,387 contracts, which 
reduced their net short to 50,446. Their record bearish position was 81,245 
contracts from last October.

   USDA issued export sales today for the week ending Dec. 25. The breakdown 
showed sales of 134,000 bales, with shipments of 140,700 bales. The top buyer 
was Vietnam with 72,100 bales. China purchased a paltry 10,400 bales. 
Cumulative sales stand at 57% of the USDA forecast versus a five-year average 
of 73% for this point in the marketing year.

   USDA will issue its January WASDE on Jan. 12. Supposedly, the tabulators 
will offer final 2025 production numbers in their data.

   For Monday, March went out at 64.65 cents, up 64 points; July was 67.31 
cents, plus 59 points; and December closed at 68.60 cents, 38 points higher. 
Monday's estimated volume was 63,621 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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