DTN Morning Cotton Commentary          02/26 07:40

   Cotton Eases Lower Thursday

   The cotton market is slightly off Thursday morning, after seeing a string of 
positive closes. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market is slightly off Thursday morning, after seeing a string of 
positive closes. Some traders may be booking some small profits at month's end.

   Spot March cotton received 10 delivery notices Thursday, which pales in 
comparison to the 462 notices tendered Wednesday. Nonetheless, the same issuers 
and stoppers were at work. The delivery period runs through Monday, March 7. 

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

   "Net sales of Upland totaling 253,200 RB for 2025/2026 were down 46 percent 
from the previous week and 12 percent from the prior 4-week average. Increases 
were primarily for Bangladesh (70,700 RB), India (59,700 RB), Pakistan (57,400 
RB), Turkey (31,300 RB), and Indonesia (9,300 RB). Net sales of 29,700 RB for 
2026/2027 were reported for Malaysia (22,000 RB) and Vietnam (7,700 RB). 
Exports of 193,000 RB were up 12 percent from the previous week, but down 10 
percent from the prior 4-week average. The destinations were primarily to 
Vietnam (74,200 RB), Pakistan (21,300 RB), Turkey (17,300 RB), Bangladesh 
(16,400 RB), and Indonesia (14,600 RB). Net sales of Pima totaling 15,200 RB 
for 2025/2026 were up noticeably from the previous week and up 63 percent from 
the prior 4-week average. Increases were primarily for India (11,200 RB), Peru 
(1,500 RB), China (900 RB), Bangladesh (900 RB), and Pakistan (400 RB). Exports 
of 4,200 RB were down 23 percent from the previous week and 19 percent from the 
prior 4-week average. The destinations were to India (3,100 RB), Vietnam (900 
RB), Peru (100 RB), and Japan (100 RB)." 

   Friday at 3:30 p.m. EST, CFTC will issue another Commitments of Traders 
report. This past week showed managed-money funds had net sold some 3,900 
contracts, swelling their current bearish position to 79,508 contracts. For 
context, their record high negative carry, from last October, stands at 81,343 
contracts.

   Next Monday commences a new trading month, replete with updated 
supply-demand tables via the March WASDE, and the all-impactful 2026 planting 
intentions from USDA. That latter report falls on March 31.

   Chart support for July cotton stands at 66.85 cents and 66.10 cents, with 
resistance around 68.00 cents and 68.50 cents. Thursday morning's estimated 
volume is 16,205 contracts.

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




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