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DTN Morning Cotton Commentary 11/12 07:26
Cotton Tilts Lower
The cotton market is lower today as some traders are expecting bad news in
Friday's WASDE update.
Keith Brown
DTN Contributing Cotton Analyst
The cotton market is lower today as some traders are expecting bad news in
Friday's WASDE update. In addition, the Dollar is still trending sideways to
up, and blatantly, there is no true trade deal signed with China.
Apparently, the U.S. government is set to reopen after being shut down for a
record 41 days. The Senate has passed the necessary legislation and sent it to
the House for its final stamp-of-approval, and then it's on the President's
desk. However, this bill funds the government through January 2026, and the
whole scenario likely repeats.
USDA will release updated supply-demand tables this Friday at noon EST. The
last published WASDE (prior to the shutdown) the agency had increased the U.S.
2025 cotton crop to 13.22 million bales versus the previous 13.21 million
bales. Also, the exports could be lowered as prior to the shutdown, U.S.
net-sales were behind the pace needed to hit USDA's seasonal goal.
December cotton will enter its delivery on Nov. 21. Thus, all traders,
except those intending to participate in the notice process, will have to
liquidate or roll forward in time.
Daily chart support for March cotton stands at 64.40 cents and 64.00 cents,
with resistance at 65.70 cents and 65.50 cents. Wednesday morning's estimated
volume is 21,180 contracts.
Keith Brown can be reached at commodityconsults@gmail.comor by calling (229)
890-7780.
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