Cotton Inches Up; US Government to Reopen

The cotton market is gingerly higher as it is absorbing the results of options expiration and also sees the government shutdown will soon end. Traders will now focus on Friday’s supply-demand update, and then look at the spot market’s delivery on Nov. 21.

The U.S. Senate passed a bill to end the government shutdown. With that, House Speaker Mike Johnson has called for House members to travel to Washington, so they can vote as soon as possible on the deal. To end the shutdown, the House needs to pass the Senate bill, and then President Donald Trump must sign it into law. In addition, some parts of the federal government as well as banks and certain futures markets are closed Tuesday in observance of Veteran’s Day. 

USDA will release updated supply-demand tables this Friday at noon eastern. The last published WASDE (prior to the shutdown) the agency had increased the U.S. 2025 cotton crop to 13.22 million bales versus the previous 13.21 million bales.

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 6- to 10-day weather outlook (Nov. 16-Nov. 20) calls for above-normal temperatures for Texas and somewhat much-above for the Delta and the Southeast. Rain-wise, Texas looks to have above-normal chances, while the Delta and the Southeast will see slightly above-normal opportunities.

Daily chart support for December cotton stands at 63.50 cents and 63.10 cents, with resistance at 64.75 cents and 65.45 cents. Tuesday morning’s estimated volume is 21,499 contracts.

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