Cotton Reels Off New Lows

Given the volatility of the surrounding financial and commodity markets, as well as the ongoing 2025 harvest, the cotton market continues to knock out new contract lows. With the U.S. government shutdown entering day 13, normal trading information is lacking, thus traders pursue the path of least resistance, and that is obviously down.

Crude oil is lower Tuesday amid the uncertainty of trade tensions between the U.S. and China. Treasury Secretary Scott Bessent has said President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea this month, as both countries try to defuse tension over tariff threats and export controls.

Federal Reserve Chair Jerome Powell will speak Tuesday before the National Association for Business Economics in Philadelphia. His remarks will mark his first major public appearance since the Fed’s policy meeting last month. That meeting exposed deep divisions among Fed governors about current interest rate policy. Given the current volatility in the financial markets, the Fed chair’s words will likely be guarded.

Daily chart support for December cotton stands at 62.50 cents and 62.00 cents, with resistance at 64.35 cents and 65.50 cents. Tuesday morning’s estimated volume is 18,310 contracts.

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