DTN Morning Cotton Commentary          02/12 07:41

   Cotton Market Trades Higher

   The cotton market continues to somewhat side-step its recent negative 
supply-demand update of Monday, and trade "north" or higher.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market continues to somewhat side-step its recent negative 
supply-demand update of Monday, and trade "north" or higher. Traders will 
assess today's export sales, the NCC's acres survey, and Friday's CFTC data for 
either inspiration or depression regarding the market.

   USDA just released its weekly export sales with the following numbers:

   "Net sales of Upland totaling 231,000 RB for 2025/2026 were down 8 percent 
from the previous week and 23 percent from the prior 4-week average.

   "Increases primarily for Vietnam (95,400 RB, including 1,900 RB switched 
from India, 200 RB switched from Japan, and decreases of 2,900 RB), Turkey 
(45,800 RB, including decreases of 100 RB), Pakistan (27,600 RB, including 
decreases of 5,300 RB), Malaysia (27,100 RB, including 7,800 RB switched from 
Vietnam), and Bangladesh (20,600 RB, including decreases of 100 RB), were 
offset by reductions for China (53,100 RB).

   "Net sales of 50,900 RB for 2026/2027 were reported for unknown destinations 
(22,000 RB), Indonesia (20,300 RB), Mexico (8,500 RB), and Honduras (100 RB).

   "Exports of 188,600 RB were down 20 percent from the previous week and 10 
percent from the prior 4-week average. The destinations were primarily to 
Vietnam (69,700 RB), Pakistan (32,900 RB), Bangladesh (20,700 RB), Turkey 
(18,800 RB), and China (7,000 RB).

   "Net sales of Pima totaling 4,500 RB for 2025/2026 were up 38 percent from 
the previous week, but down 70 percent from the prior 4-week average.

   "Increases were primarily for Vietnam (1,300 RB), China (900 RB), Thailand 
(900 RB), India (600 RB), and Pakistan (500 RB). Exports of 8,300 RB were up 
noticeably from the previous week and up 26 percent from the prior 4-week 
average. The destinations were primarily to India (3,400 RB), Vietnam (2,900 
RB), Costa Rica (900 RB), China (500 RB), and Pakistan (300 RB)."

   Sometime today, the NCC will release its 2026 acres survey. Although not an 
official government report, nonetheless, it will be the first fundamental look 
at the potential for 2026. Last year's survey showed intentions of 9.6 million 
cotton acres, down 14.5% from 2024.

   This Friday at 3:30 p.m. EST, the CFTC will update its Commitment of Trader 
data. Last week the managed-money funds sold some 6,700 positions, swelling 
their net-short position to 71,700 contracts. The record is 81,000-plus, which 
might be challenged in this report.

   The market will be closed this Monday in observance of President's Day. 
Trading will resume at 9 p.m. EST Monday night as normal. However, all 
government reports for next week will be delayed by one day.

   Chart support for July cotton stands at 65.25 cents and 64.55 cents, with 
resistance around 66.50 cents and 67.10 cents. Thursday morning's estimated 
volume is 23,626 contracts.

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




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