Cotton Toes The Line

While outside markets such as metals and grains are bearishly roiling, the cotton market is trying to maintain a semblance of friendly decorum. However, as 2025 fades, traders will see additional catch-up government reports, while some growers will likely sell a portion of their current production. 

The cotton market will be closed for New Year’s Day, although we are checking on the possibility for early closings and delayed reopening on the adjacent days. 

Given that President Trump closed the U.S. government on Christmas Eve, Christmas Day, and the day after Christmas, we are assuming the reporting schedules for delayed export sales and CFTC updates are again skewed. We do note that this Friday, USDA will issue an export sales report at 8:30 a.m. EST. 

Crude oil has jumped Monday as traders weighed the talks between the U.S. and Ukraine on a possible deal to end the war, versus a potential oil supply disruption in the Middle East. Ukrainian’s President Volodymyr Zelenskiy said Monday that significant progress had been made in talks with President Trump and also agreed to a meeting next week to finalize certain issues aimed at ending Russia’s war in Ukraine. However, Israel is threatening to strike Iran again for her possible renewals of her (Iran) nuclear program.

Daily chart support for March cotton stands at 64.00 cents and 63.60 cents, with resistance hovering about 65.00 cents and 65.50 cents. Monday morning’s estimated opening volume is 6,270 contracts.

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