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DTN Closing Cotton 10/23 13:46
Cotton Seesaws Lower
Cotton slips as traders eye Fed, harvest progress, and Iran tensions .
Keith Brown
DTN Contributing Cotton Analyst
Unmoved by its own positive fundamentals, and discouraged by outside
markets, the cotton market ended Friday somewhat lower on moderate volume. On
Monday, traders will enter the last week of the month, meaning they will likely
do some position squaring. However, they will also assess the crop harvest
pace, the potential action of the Federal Reserve, and the on-going U.S./Iran
Conflict.
At 3:30 p.m. Friday, the CFTC will update its Commitment of Traders (COT)
report numbers. Last week, the managed-money funds net bought 1,862 positions
increasing their net-long carry to 65,699 contracts.
Crude Oil remained dramatically higher going into the weekend. Spot December
Crude ran up to fill over the switch-of-contract left behind by the expiring
November contract. Additionally, traders fear renewed combat operations by the
U.S. against Iran before the US Midterm Elections.
Next week the Federal Reserve will meet to discuss the U.S. economy. Recent
reports are showing higher concentrations of inflation; thus the central bank
may feel pressed to raise rates. However, most analysts feel that the central
bank will wait till December to do so.
For Friday, December closed at 80.20 cents, down 59 points, March 2027
finished at 83.94 cents, minus 54 points, and July 2027 settled at 86.09 cents,
52 points lower. Friday's estimated volume was 50,660 contracts.
Keith Brown can be reached at commodityconsults@gmail.com
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