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DTN Closing Cotton 12/05 13:32
Slow Day for Cotton
The cotton market remained starkly sideways today.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market remained starkly sideways today. Growers are winding down
their harvest activities at a time when demand is extremely slow, and trading
interest is lacking. Next week, traders will see new numbers from USDA, as well
as the Federal Reserve's take on interest rates.
This afternoon at 3:30 p.m. EST, the CFTC will issue an updated Commitment
of Traders report. The release will be as of Oct. 31. At last count, the
managed-money funds were net-short in excess of 81,000 contracts.
The PCE Index, the Fed's preferred inflation gauge, slowed down on an annual
basis for the first time since April. Core PCE inflation, which excludes food
and energy, ran at a 2.8% annual pace in September, a deceleration from
August's 2.9% rate. Monthly core inflation came in at 0.2%, in line with
August's numbers.
Next week, the Federal Reserve will meet, and traders are poised for a
one-quarter reduction. According to the CME FedWatch Tool, the odds for a cut
have moved from an earlier 40% chance to the current 87% for the cut.
Also, next week, USDA will issue its December WASDE. The agency increased
the 2025 U.S. crop by 900,000 bales in its last report.
Spot December cotton will expire on Monday, Dec. 8, settlement. To date,
there have been 185 delivery notices tendered against the contact.
For Friday, March 2026 went out at 63.93 cents, minus 15 points; July was
66.03 cents, down 23 points; and December 2026 halted at 67.51 cents, 14 points
lower. Friday's estimated volume was 38,584 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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