Cotton Seesaws Some More

The cotton market continues to chop about both sides of Tuesday’s close. Traders are awaiting upcoming commodity and economic reports to see if any direction can be gained.

Tuesday, the CFTC published another updated Commitments of Traders Report. Its data showed the managed-money funds bought in a mere 98 contracts, leaving them still record net-short position with some 81,000-plus contracts.

Spot December contract remains in its delivery. There were no notices tendered for Wednesday. Thus far, the total notices tendered stand at 185 contracts. Delivery runs through Dec. 7.  

Thursday, USDA will issue its weekly export sales report for the week ended Oct. 30. Currently, cumulative sales for 2025-26 have reached 44% of the USDA forecast versus a 5-year average of 60% for this point in the marketing year.

This Friday, the Labor Department will issue its monthly job report. Expectations call for 125,000 non-farm jobs versus the previous number of 177,000 jobs.

As mentioned, the Federal Reserve will meet next week and traders are anticipating an interest rate reduction. According to the CME Fedwatch Tool, the odds for a cut have moved from an earlier 40% chance to the current 87% for a one-quarter cut in the Fed Funds rate in the December meeting.

Daily chart support for March cotton stands at 64.10 cents and 63.80 cents, with resistance at 65.30 cents and 65.60 cents. Wednesday morning’s estimated opening volume is 4,925 contracts.

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