Cotton Timidly Higher Thursday

Overnight, the cotton market inched higher after posting a fresh contract low Wednesday. The U.S. government shutdown is in Day 8, which means all government, and thus cotton, reports are delayed.

Had USDA’s World Supply/Demand Report been released Thursday as was scheduled, private forecasters believe it would have shown slightly higher production, less world consumption, adding up to a small increase in world ending stocks.

Effective Oct. 14, 2025, the Trump administration will impose new port fees on vessels with links to China. These fees vary depending on the vessel’s ownership, construction, and type. Fee structure for Chinese-linked vessels, Chinese-owned or operated vessels will be charged $50 per net ton. Chinese-built vessels will face higher fees running between $18 per net ton or $120 per container discharged. China has protested the action.

The potential $15 billion payments in farmer aid was expected to be announced this week. However, a White House spokesperson said yesterday that a “wrench” was thrown into this plan due to the shutdown. The closure prevents any such payments without government funding approved by Congress.

Crude oil is weaker Thursday after Israel and Hamas agreed to the first phase of a plan to end the war in Gaza. President Donald Trump said Israel and Hamas had reached a long-sought deal for a Gaza ceasefire and hostage release under a plan for ending the 2-year-old war in the Palestinian enclave. Israeli Prime Minister Benjamin Netanyahu said he would convene the government on Thursday to approve the ceasefire agreement.

Daily chart support for December cotton stands at 64.45 cents and 64.00 cents, with resistance at 65.25 cents and 66.00 cents. Thursday morning’s estimated volume is 6,910 contracts.

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