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DTN Closing Cotton 12/08 13:39
Cotton Fails To Hold
The cotton market finished slightly lower Monday after higher trade early in
the session.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market finished slightly lower Monday after higher trade early in
the session. Initially, the traders saw better export sales as an early
positive, but weaker Chicago grains, a stronger U.S. dollar, and nervous
anticipation over Tuesday's December WASDE somewhat capped the buying.
USDA released a catch-up export sales report Monday, covering the period of
Oct. 30. Net sales were shown to be 292,000 bales for the current season, some
97,000 for the red crop, with weekly shipments totaling 136,000 bales. The next
report to be released will be this Thursday and will reflect business from Nov.
13.
The December 2025 contract expired at Monday's settlement. Its trading life
spanned from a high of 82.32 cents from Jan. 30, 2023, to its recent contract
price low of 60.79 cents from Nov. 17, 2025. During its delivery it saw 185
notices tendered.
Tuesday at noon EST, USDA will issue updated supply-demand tables via its
December WASDE. Last release, the tabulators increased the U.S. 2025 crop some
900,000 bales, as well as reporting higher domestic and world carryouts.
The Federal Reserve will meet on Tuesday and announce on Wednesday at 2 p.m.
EST, any action it will take regarding U.S. interest rates. According to the
CME Fedwatch Tool, the odds for a cut have moved from an earlier 40% chance to
the current 87% for a quarter-point reduction.
For Monday, March 2026 went out at 63.68 cents, minus 25 points; July was
65.80 cents, down 23 points; and December 2026, halted at 67.40 cents, off 11
points. December 2025 cotton expired Monday at 61.88 cents. Monday's estimated
volume was 40,844 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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