DTN Morning Cotton Commentary          02/23 07:13

   Cotton Lower on Tariff Jitters  

   The cotton market, along with other agricultural markets, is somewhat lower 
Monday thanks to the SCOTUS ruling against U.S. tariffs. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market, along with other agricultural markets, is somewhat lower 
Monday thanks to the SCOTUS ruling against U.S. tariffs. Traders now fear 
lacking that carrot-and stick incentive, nations such as China can willingly 
eschew buying U.S. products. Supposedly, President Trump will travel to China 
on an already pre-arranged state visit in early April.

   As mentioned, the U.S. Supreme Court ruled against a large portion of 
Trump's tariff agenda. In a 6 to 3 decision, the majority ruled the law in 
question "does not authorize the president to impose tariffs". Chief Justice 
John Roberts delivered the opinion of the court. Justices Clarence Thomas, 
Samuel Alito and Brett Kavanaugh dissented. Since that time, Trump has imposed 
across-the-board tariffs of 15% under other laws.

   Also last Friday, the CFTC updated its Commitments of Traders data. Its 
numbers held the managed-money funds had net-sold some 3,900 positions, thereby 
increasing their net-short carry to 79,508 contracts. Their record bearish 
concentration, from last October, stands at 81,343 contracts. 

   March cotton entered its delivery period today, with zero notices applied 
against the spot month. Delivery runs through Monday, March 7. 

   Crude oil is slightly higher Monday, as the U.S. and Iran are headed for a 
third round of nuclear talks this Thursday. President Trump has said he prefers 
a peaceful resolution to Iran's nuclear ambitions, but also has "a clock" 
running concerning an agreement.

   Chart support for July cotton stands at 66.40 cents and 66.05 cents, with 
resistance around 67.70 cents and 68.00 cents. Monday morning's estimated 
volume is 12,643 contracts.

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




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