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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