Cotton Slants Sideways

The cotton market continues to blaze a trail of boredom, as traders await certain imminent reports and events. Their hope is that improving — or at least market-moving — news will emerge.

Wednesday, Agriculture Secretary Brooke Rollins announced a bridge payment for U.S. farmers. The financial package, to be revealed next week, is designed to provide short-term relief, while longer trade and aid packages are finalized.

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

USDA will issue another backlogged export sales report today at 8:30 a.m. EST. Its data will cover the week ended Oct. 30. Currently, U.S. cumulative sales for the 2025-26 season stands at 44% of the USDA forecast versus a 5-year average of 60% for this point in the marketing year.

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. The information can possibly affect the action of the Federal Reserve. The central bank meets next week to decide on U.S. interest rates. Traders are anticipating a rate reduction. According to the CME Fedwatch Tool, the odds for a cut have shifted from an earlier 40% chance to the current 87% bet for a one-quarter cut.

Daily chart support for March cotton stands at 64.10 cents and 63.75 cents, with resistance at 65.00 cents and 65.60 cents. Thursday morning’s estimated opening volume is 5,063 contracts.

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