Cotton Trudges Sideways

The cotton market continues to snake along as bearish speculators maintain their tight grip, while U.S. farmers are concluding the harvest process.

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

Friday at 10 a.m.,EST the Commerce Department will release its delayed PCE (personal consumption expenditures) Index. Supposedly, this report is the Fed’s go-to inflation gauge. The PCE will give the Fed its final inflation view before Wednesday’s interest rate vote.

Also Friday, the University of Michigan will release its consumer survey for December. That report provides a glimpse at sentiment as well as the view on inflation over the near and longer term.

Next week, the Federal Reserve will meet and traders are poised for a one-quarter reduction. According to the CME Fedwatch Tool, the odds for a cut have moved from an earlier 40% chance to the current 87%.

Also next week, USDA will issue its December WASDE. The agency increased the 2025 crop in its last reporting.

Daily chart support for March cotton stands at 63.85 cents and 63.25 cents, with resistance at 65.00 cents and 65.50 cents. Friday morning’s estimated opening volume is 6,691 contracts.

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