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DTN Closing Cotton 11/19 13:57
Cotton Retreats Ahead of First Notice Day
The cotton market was somewhat lower Wednesday ahead of December's First
Notice Day (delivery) on Friday.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market was somewhat lower Wednesday ahead of December's First
Notice Day (delivery) on Friday. Traders in the spot month were still squaring
positions. In addition, the U.S. dollar was markedly higher amid roiling
political Washington chaos, such as the angst over the Epstein files.
USDA is expected to issue weekly export sales reports Thursday at 8:30 a.m.
EST. Last week's report showed net sales of 199,506 bales for the week ended
Sept. 25, which was an improvement over the previous week but not the highest
of the season. Cumulative sales are still running at the slowest pace in 11
years in terms of the total amount and the slowest in five years relative to
the USDA forecast.
The Federal Reserve issued the minutes from its last meeting, pinpointing
who said what about raising or lowering interest rates. Currently there is a
50% chance of seeing reduced rates in December versus the previously expected
70% possibility. With that, Thursday at 8:30 a.m. EST, the Labor Department
will issue a catch-up monthly jobs report. Recent private-sector employment
tabulations suggested a huge drop-off in hirings has occurred. The September
non-farm payrolls number was 22,000.
As mentioned, December cotton will enter its notice period on Friday. All
traders, except those intending to participate in the notice process, will have
to liquidate or roll forward by the close of Thursday. Current open interest
for the spot month is 18,803 contracts.
The CFTC will issue a catch-up Commitments of Traders Report sometime
Wednesday. However, the agency said it will need through the end of January to
complete the catch-up process.
For Wednesday, December 2025 ended at 62.30 cents, down 22 points, while
March 26 closed at 63.78 cents, off 61 33 points. Wednesday's estimated volume
was 49,082 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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