DTN Closing Cotton            01/14 13:39

   Cotton Quietly Consolidates 

   The cotton market was essentially flat-to-lower Wednesday.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was essentially flat-to-lower Wednesday as it tried to 
build on USDA friendlier supply-demand data. Monday, USDA via the January WASDE 
cut the 2025 crop by 350,000 bales.

   Thursday at 8:30 a.m., USDA will issue its weekly export sales report. Last 
week sales amounted to 98,000 for the current crop, well below the 134,000 sold 
in the previous week. Thus far, cumulative sales are 59% of the USDA's forecast 
versus its five-year average of 76% for this point in the marketing year. Last 
week's shipments totaled 154,036 bales, up from 140,723 the prior week.

   On Friday, the CFTC will update its Commitments of Traders information. Last 
Friday's numbers showed the managed-money funds had net bought some 1,300 
positions, reducing their net carry to 47,700 contracts.

   The Cotton Association of India announced the nation's 2025-26 cotton 
imports, which began on October 1, have increased some 22% from the previous 
year to a record 5 million (kilo) bales. Imports rose 158% year on year to a 
record 3.1 million bales in the December quarter after the government allowed 
duty-free imports. According to the weekly USDA export sales reports, the U.S. 
shipped 453,225 (U.S.) bales to India in 2024-25 (August-July), up from 89,878 
the previous year. So far in 2025-26, cumulative export sales have reached 
307,074 bales, up from 303,361 for the same period last year and 31,925 at this 
point in the 2023-24 season.

   The U.S. dollar is struggling to maintain a rally that began in late 
December, as traders assess the U.S. economy and geopolitical situations. In 
addition, traders are concerned about the Federal Reserve's independence as the 
DOJ undertakes a criminal investigation into Fed Chair Jerome Powell in 
relation to a building renovation.

   For Wednesday, March 2026 went out at 64.99 cents, up 11 points; July was 
67.91 cents, plus 2 points; and December 2026, closed at 69.32 cents, 3 points 
higher. Wednesday's estimated volume was 51,325 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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