DTN Morning Cotton Commentary          01/08 07:42

   Cotton Awaits Reports 

   The cotton market is slightly lower Thursday as it wants to see the 
information from several reports. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is slightly lower Thursday as it wants to see the 
information from several reports. That data stream includes export sales, jobs 
report, a possible court ruling, the CFTC numbers, and a WASDE update. The 
fiber market also continues to experience grower selling and merchant buying, 
when pricing conditions are favorable.

   Thursday morning, USDA released its weekly export sales report. Highlights 
included net sales of upland totaling 98,000 RB (running bales) for 2025-26 
were down 27% from the previous week and 49% from the prior four-week average. 
Increases primarily for Vietnam (38,700 RB, including 2,200 RB switched from 
China), Pakistan (14,400 RB), Mexico (13,000 RB, including decreases of 300 
RB), Turkey (12,700 RB), and China (12,400 RB), were offset by reductions for 
South Korea (200 RB).

   Net sales of 22,500 RB for 2026-27 were reported for Vietnam (15,900 RB) and 
Turkey (6,600 RB). Exports of 154,000 RB were up 10% from the previous week and 
18% from the prior 4-week average. The destinations were primarily to Vietnam 
(47,800 RB), Pakistan (28,800 RB), China (19,700 RB), Turkey (14,400 RB), and 
Indonesia (12,400 RB).

   Net sales of Pima totaling 4,300 RB for 2025-26 were up 38% from the 
previous week, but down 37% from the prior four-week average. Increases were 
primarily for China (1,800 RB), Pakistan (1,000 RB), India (700 RB), Thailand 
(600 RB), and Turkey (100 RB).

   Exports of 4,500 RB were down 58% from the previous week and 38% from the 
prior four-week average. The destinations were primarily to China (2,700 RB), 
Egypt (700 RB), Vietnam (400 RB), Guatemala (300 RB), and India (200 RB).

   Friday, the U.S. Supreme Court will supposedly rule on the legality of the 
Trump administration's sweeping global tariffs. The challenge to Trump's 
tariffs is among the most closely watched of the cases awaiting decisions by 
the top U.S. judicial body that could impact the global economy and marks a 
major test of presidential powers.

   Also on Friday, the CFTC will issue its scheduled (current) Commitments of 
Traders information. At last count, the managed-money funds were net-short some 
49,000 bales.

   Monday, USDA will issue its monthly supply-demand update. U.S. exports could 
be reduced, but also the 2025 crop might see a small retraction. The report 
will be at noon eastern.

   Daily chart support for March cotton stands at 64.30 cents and 64.00 cents, 
with resistance hovering about 66.00 and 66.50. Thursday morning's estimated 
opening volume is 11,875 contracts.

    

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




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