DTN Closing Cotton            01/16 13:39

   Cotton Rides No Wave   

   The cotton market was flat-to-sideways for its Friday session.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was flat-to-sideways for its Friday session. Essentially, 
there was position-squaring on both sides ahead of the three-day Martin Luther 
King Day holiday. Peripherally, there are heightened fears on many fronts, 
including Iran, Russia, and Minnesota, among others.

   The market will be closed Monday in observance of the holiday. However, 
trading will resume at 9 p.m. EST Monday as part of Tuesday's session. Thus, 
there will be no DTN commentary this Monday.

   Friday at 3:30 p.m. EST 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.

   Recent U.S. cotton export sales (Jan. 8) showed net sales of 339,724 bales 
for the current marketing year and 10,120 for 2026-27 for a total of 349,844. 
This amount was the highest since Nov. 6 and was only the third time in the 
marketing year that sales eclipsed the 300,000-bale mark. Cumulative sales have 
reached 62% of the USDA forecast versus a five-year average of 78% for this 
point in the marketing year.

   Crude oil was higher Friday amid concerns over supply risks. The energy 
complex came alive this week when protests flared up in Iran and President 
Donald Trump signaled the potential for military strikes. Supposedly, Tehran's 
crackdown on the protesters was easing, allaying concerns of possible U.S. 
military action. The big worry is Iran blocking the Strait of Hormuz, through 
which around a quarter of oil supplies flow.

   For Friday, March 2026 went out at 64.66 cents, off 5 points; July was 67.65 
cents, down 4 points; and December 2026 closed at 69.06 cents, minus 4 points. 
Friday's estimated volume was 34,275 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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