Cotton Timidly Inches Higher

The cotton market is trying to ease higher Tuesday as traders are weighing all economic aspects for its demand. Monday’s delayed export sales data seemed solid enough and there are expectations of an interest rate cut by later this month. In addition, the 2025 harvest seems to be winding down.

As mentioned, the Federal Reserve will meet next week with the hope of an interest rate reduction. However, the odds for a cut, like Las Vegas bookmakers, have been all over the place

Tuesday at 3:30 p.m. EST the CFTC will publish updated Commitments of Traders data. Its previous catch-up release of last Wednesday showed managed-money funds posted a new record net-short position in excess of 80,000-plus contracts.

Spot December contract remains in its delivery period and today there were 12 notices issued. Thus far, the total notices tendered stand at 185 contracts. Delivery runs through Dec. 7.  

Two key reports traders are eyeing this week are Thursday’s export sales report, followed by Friday’s monthly job data from the Labor Department. Both will likely influence the prices of cotton.

Daily chart support for March cotton stands at 64.00 cents and 63.50 cents, with resistance at 65.00 cents and 65.45 cents. Tuesday morning’s estimated opening volume is 6,554 contracts.

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