Cotton Tries to Grab Hold

The cotton market is somewhat higher Monday after its beat-down of last week. With that, the market may be a bit oversold, although most technical indicators slant bearish. However, over the weekend, new war fears were renewed between the U.S. and Iran and has crude oil higher. Moreover, there is a supply-demand update this Thursday to be assessed.

The CFTC issued its weekly Commitments of Traders Report on Friday. Its numbers showed a second consecutive week of net selling by the managed-money funds. They sold nearly 1,800 positions, reducing their overall net-long position to some 52,402.

As a reminder, option expiration for the July contract is Friday, June 12, while the spot July contract commences delivery on June 24, running through July 9.

Monday afternoon at 4 p.m. EDT, USDA will present its Crop Progress report. Last week saw the 2026 crop 66% planted. That pace was somewhat in line with the five-year pace of 67%.

Thursday, USDA will issue weekly export sales at 8:30 a.m. EDT and its June WASDE at noon eastern. Some initial expectations are calling for a larger cotton crop. We also note that the official Planted Acres will be released on June 30.

Crude oil is demonstratively higher Monday morning as Israeli planes hit Iranian targets in western and central Iran. The action was in response to Iran launching missiles into Israel over the weekend.

Chart support for December cotton stands at 76.75 cents and 76.00 cents, with resistance around 78.80 cents and 79.25 cents. Monday’s estimated volume is 23,522 contracts.

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