| |
DTN Closing Cotton 11/12 13:30
Cotton Posts Life-of-Contract Low Closes
The cotton market came within a fiber of uncovering fresh life-of-contract
low prices Wednesday, although it did post life-of-contract low closings.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market came within a fiber of uncovering fresh life-of-contract
low prices Wednesday, although it did post life-of-contract low closings. With
some traders fearing a forthcoming bearish November crop update, and given that
the trend is already demonstratively down, it was easy for the ICE futures to
adhere to the path of least resistance.
For the November WASDE, a major newswire poll has an average trade
expectation for the U.S. 2025 cotton production at 13.52 million bales. That
number would be higher than the 13.22 million reported in September. Exports
are expected at 12.08 million versus 12.00 million in September, and ending
stocks are expected at 3.76 million versus 3.60 million previously reported.
World 2025-26 production is expected to come in at 117.91 million bales versus
117.68 million in September, world consumption at 118.12 million versus 118.83
million in September, and world ending stocks at 73.64 million versus 73.14
million in September.
Crude oil prices fell by more than 2% Wednesday, amid oversupply concerns.
OPEC said global oil supply will match against demand next year. There had been
earlier projections of a supply versus demand deficit. Meanwhile the IEA
(International Energy Agency), forecasted in its annual World Energy Outlook on
Wednesday that oil and gas demand could continue to grow until 2050.
The 6- to 10-day weather outlook (Nov. 17-Nov. 21) calls for much
above-normal temperatures from Texas to the Southeast. Rain-wise, Texas looks
to have above-normal chances, while the Delta and the Southeast will see
slightly above-normal opportunities.
For Wednesday, December 2025 ended at 63.30 cents, off 58 points, while
March 2026 closed at 64.81 cents, minus 57 points. Wednesday's estimated volume
was 114,895 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
(c) Copyright 2025 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here to sign up for DTN Snapshot.
|
|
