DTN Closing Cotton            11/04 13:35

   Cotton Headlong Into Headwinds

   The cotton market was blunted somewhat today amid outside weakness.

Keith Brown
DTN Contributing Cotton Analyst

   The cotton market was blunted somewhat today amid outside weakness. That is, 
the metals, grains, livestock, and stock markets were all collectively lower, 
and thus, any upside momentum for cotton was lost. Much of their negativity was 
based on the strength in the U.S. dollar. In addition, cotton has several 
specific reports/events that could bearishly unfold.

   This Friday, options on the December contract will expire on the close of 
the ICE futures. Their expiration will affect the market's total open interest 
levels.

   USDA has announced it will release an updated crop report on Nov. 14, even 
if the shutdown continues. With that, there are several crop estimates expected 
from private companies this week.

   December cotton will enter its delivery on Nov. 21. Thus, all traders, 
except those intending to participate in the notice process, will have to 
liquidate or roll forward in time.

   The U.S. dollar continues to move higher this morning. It is drawing 
inspiration from the possibility of no more interest rate cuts this year, as 
well as superior earnings from the stock market companies.

   For Tuesday, December 2025 ended at 65.20 cents, off 48 points, while March 
2026 closed at 66.42 cents, down 46 points. Tuesday's estimated volume was 
49,537 contracts.

   Keith Brown can be reached at commodityconsults@gmail.com




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