DTN Morning Cotton Commentary          05/01 07:13

   Cotton Pushes Higher 

   In overnight trade -- and the first session of the month of May -- the 
cotton market posted even higher highs.

Keith Brown
DTN Contributing Cotton Analyst

   In overnight trade -- and the first session of the month of May -- the 
cotton market posted even higher highs. Part of that movie was influenced by 
the limit-up trade of the July contract Thursday and the continuing drought 
conditions still affecting the new crop.

   Effective Friday, May 1, 2026, the daily price limit for all Cotton No. 2 
futures contract delivery months subject to a limit will expand to 4 cents per 
pound (400 points) above and below the prior day settlement price for the 
respective delivery month.

   Spot May contract is in delivery. Friday there were zero notices issued. 
Thus far, 178 notices have been issued. May's delivery period runs through May 
6.

   Friday at 3:30 p.m. EDT, the CFTC will update its Commitments of Traders 
information. Last week, the report showed managed-money funds bought some 
17,000 positions, strengthening their net-long carry to 34,464 contracts.

   Crude oil is higher Friday, even after hitting a four-year high this week. 
The move comes as President Donald Trump faces a 60-day deadline under the War 
Powers Resolution related to military action in the Iran war. Under the 1973 
law, a president must withdraw troops within 60 days of notifying Congress of 
their deployment, unless the action was authorized by the Congress. The Trump 
administration argued the ceasefire, reached three weeks ago, had "terminated" 
hostilities between the two sides.

   Chart support for July cotton stands at 80.38 cents and 79.75 cents, with 
resistance around 84.00 cents and 84.50 cents. This morning's estimated volume 
is 30,433 contracts.

    

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




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