DTN Closing Cotton            09/16 13:35

   Cotton Market Awakens

   The cotton market was meaningfully higher Tuesday as traders squared their 
positions ahead to Wednesday's likely interest rate cut. 

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was meaningfully higher Tuesday as traders squared their 
positions ahead to Wednesday's likely interest rate cut. Moreover, the market 
has become exhaustively oversold as certain speculators are holding nearly 
record short positions. Traders are also becoming aware that some key growing 
areas are becoming stressed in their growing conditions. The market posted its 
highest close since Aug. 22.

   The Federal Reserve is meeting today and will announce on Wednesday its 
latest position on U.S. interest rates. Odds are calling for a quarter-point 
cut, but some think there could be a half-point reduction.

   President Trump indicated that he would talk to China's President Xi on 
Friday regarding trade. The success of the Madrid talks has enabled the 
possibility of a face-to-face meeting sometime in October.

   USDA will issue its weekly export sales on Thursday. Last week saw net sales 
of 129,000, off 475, and shipments of 130,000 bales, down 16%. However, China 
and India were in the business mix.

   The 6- to 10-day weather outlook calls for above to much above normal 
temperatures for most of the U.S. Cotton Belt. Rain wise, Texas looks to have 
normal chances, while the Delta and the Southeast appear to have slightly above 
normal chances.

   For Tuesday, December 2025 ended at 67.68 cents, up 84 points; while March 
2026 settled at 69.57 cents, up 82 points. Tuesday's estimated volume was 
40,740 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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