DTN Closing Cotton            09/18 13:44

   Cotton Settles Lower, Technical Selling

   December Cotton ended Friday down 0.50 cent as some disappointed speculators 
liquidated positions.

Keith Brown
DTN Contributing Cotton Analyst

   December Cotton ended Friday down 0.50 cent as some disappointed speculators 
liquidated positions. This week the market saw a disruptive hurricane, plus 
super positive sales, but could not make bullish headway. Thus, the 
disappointment turned into selling. Additionally, with the U.S.-China relations 
seemingly on the rocks, some traders were unwilling to take long positions into 
the weekend.

   Friday afternoon, the CFTC will release its commitment of traders 
information, but the data will be as of last Tuesday. Although speculators have 
been net long since the April low, they will need further fundamental 
encouragement next week to stay technically long.

   On Monday, USDA will update the condition of the 2020 crop, and mostly 
likely the impact of Hurricane Sally. Last week the crop was rated 45% good to 
excellent, which equaled its stance to the prior week. Also, the 2020 harvest 
is just now beginning to unfold, although its progress is barely scratching 
single digits. 

   For the week, December cotton was up 0.85 cent, for the month up 0.50 cent 
and for the year down 4.70 cents.

   For Friday, December Cotton closed at 65.66 cents, down 0.19 cent, March 
closed at 66.58 cents, down 0.21 cent and December 2021 finished at 65.97 
cents, down 0.21 cent. Estimated volume was 17,727 contracts.

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




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