Cotton Less Wobbly?

The cotton market is trying to establish some friendly footing this morning. Some traders remain discouraged with the rising U.S. dollar, the ongoing 2025 harvest and the on-again-off-again trade tedium with China.

U.S. Treasury Secretary Bessent will meet with Chinese Vice Premier He Lifeng in Malaysia this Sunday to try to forestall an escalation of U.S. tariffs on Chinese goods. Over the weekend, President Trump confirmed that he would meet with Chinese President Xi in South Korea in two weeks.

The energy complex is again sharply higher today as the Trump administration slapped additional sanctions on Russia’s two largest oil companies. The Treasury Department said it was doing so because of “Russia’s lack of serious commitment” to ending the war in Ukraine. Moreover, India’s Modi assured President Trump that India would be limiting its oil purchases from Russia.

In other notable headlines, the U.S. government has entered its 23rd day of being shut down, with no end in sight. The Chicago grains are mixed, as are U.S. stock markets. The U.S. dollar is higher, and as mentioned, crude oil is sharply higher, nearing $61 on new U.S. and EU sanctions on Russia oil companies. Russia increased attacks on Ukraine after the Trump/Putin meeting was canceled. Greer and Bessent will meet with their China counterparts.

Daily chart support for December cotton stands at 63.45 cents and 62.80 cents, with resistance at 64.10 cents and 64.80 cents. Thursday morning’s estimated volume is 5,697 contracts.

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